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Gould Design has $ 1 , 0 0 0 face value bonds outstanding with 1 7 years to maturity, a coupon rate of 5 percent,

Gould Design has $1,000 face value bonds outstanding with 17 years to maturity, a coupon rate of 5 percent, semiannual interest payments, and a current price of $987.78.
What is the aftertax cost of debt if the tax rate is 21 percent?
Multiple Choice
4.04%
5.09%
2.01%
4.02%
5.11%
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