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( iii ) Debt capital ( b ) Prescott Corporation issues a $ 1 , 0 0 0 par, 2 0 - year bond paying
iii Debt capital
b Prescott Corporation issues a $ par, year bond paying the market rate of Coupons are annual. The bond will sell for par since it pays the market rate, but flotation costs amount to $ per bond. What is the pretax and aftertax cost of debt for Prescott Corporation?
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