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Gin Cos bonds, which bear an annual coupon rate of 7.5%, have a face value of $1,000 and mature in 13 years are currently trading

Gin Cos bonds, which bear an annual coupon rate of 7.5%, have a face value of $1,000 and mature in 13 years are currently trading for $1,125. If Gin Co is in the 21% tax bracket, what is its after-tax cost of debt?

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