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If a corporation faces a tax rate of 21percent, the aftertax cost of debt for a 15year, 12percent, $1,000 par valuebond, selling at$950 is________. A.

If a corporation faces a tax rate of 21percent, the aftertax cost of debt for a 15year, 12percent, $1,000 par valuebond, selling at$950 is________.

A. 12.76 percent

B. 2.68 percent

C. 5.11 percent

D. 10.08 percent

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