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Golden State Co. issued 10-year, 6 percent semiannual coupon bonds. The bonds currently sell at 120 percent of face value (face value is $1,000 ).

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Golden State Co. issued 10-year, 6 percent semiannual coupon bonds. The bonds currently sell at 120 percent of face value (face value is $1,000 ). What is the firm's after-tax cost of debt if the tax rate is 21 percent? 3.60 percent 4.62 percent 1.80 percent 2.84 percent

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