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Jay's Bakery has a bond issue outstanding that matures in four years. The bonds pay interest semi-annually. Currently, the bonds are quoted at 102.3 percent

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Jay's Bakery has a bond issue outstanding that matures in four years. The bonds pay interest semi-annually. Currently, the bonds are quoted at 102.3 percent of face value and carry a coupon rate of 9 percent. What is the firm's aftertax cost of debt if the tax rate is 35 percent? 6.88 percent 8.66 percent 5.63 percent 5.40 percent 8.31 percent

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