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For the following $1,000-par-value bond, assuming annual interest payment and a 25% tax rate, calculate the after-tax cost to maturity using the approximation formula. Life

For the following $1,000-par-value bond, assuming annual interest payment and a 25% tax rate, calculate the after-tax cost to maturity using the approximation formula.

Life Underwriting fee Discount () or premium (+) Coupon interest rate

5 years $30 -$50 11%

The after-tax cost of financing using the approximation formula is %. (Round to two decimal places.)

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