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Four years ago, Pepsi Kraft Corp. issued $1,000,000 in 20-year, 7.75 percent semiannual coupon bonds at par. Today, the bonds are quoted at $1,026. What

Four years ago, Pepsi Kraft Corp. issued $1,000,000 in 20-year, 7.75 percent semiannual coupon bonds at par. Today, the bonds are quoted at $1,026. What is the firm's after-tax cost of debt if it is in the 21% marginal tax rate?

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