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For the following $1,000-par-value bond, assuming annual interest payment and a 26% 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 26% tax rate, calculate the after-tax cost to maturity using the approximation formula.

Life

Underwriting fee

Discount

()

or premium

(+)

Coupon

interest rate

years

$40

The after-tax cost of financing using the approximation formula is __ %

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