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Galvatron Metals has a bond outstanding with a coupon rate of 6 . 7 percent and semiannual payments. The bond currently sells for $ 1

Galvatron Metals has a bond outstanding with a coupon rate of

6.7

percent and semiannual payments. The bond currently sells for $

1, 891

and matures in

17

years. The par value is $

2, 000

and the company's tax rate is

21

percent. What is the company's aftertax cost of debt?

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