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Jiminy's Cricket Farm issued a bond with a 30-years to maturity and a semiannual coupon rate of 5 percent 6 years ago. The bond currently

Jiminy's Cricket Farm issued a bond with a 30-years to maturity and a semiannual coupon rate of 5 percent 6 years ago. The bond currently sells for 106 percent of its face value. The companies tax rate is 25 percent. What is the pretax cost of debt and after tax cost of debt?

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