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Jiminys Cricket Farm issued a 30-year, 5 percent semiannual coupon bond 3 years ago. The bond currently sells for 94 percent of its face value.
Jiminys Cricket Farm issued a 30-year, 5 percent semiannual coupon bond 3 years ago. The bond currently sells for 94 percent of its face value. The companys tax rate is 22 percent. What is the companys pretax cost of debt? What is the companys aftertax cost of debt?
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