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Jay's Bakery has a bond issue outstanding that matures in 10 years. The bonds pay interest semiannually. Currently, the bonds are quoted at 99.8 percent

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Jay's Bakery has a bond issue outstanding that matures in 10 years. The bonds pay interest semiannually. Currently, the bonds are quoted at 99.8 percent of face value and carry a coupon rate of 7.5 percent. What is the aftertax cost of debt if the tax rate is 21 percent? 07.05% 6.42% 5.54% 6.11% 5.95%

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