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JJ food has a bond outstanding that sells for $2,253 and matures in 22 years. The bond pays semiannual coupons and has a coupon rate

JJ food has a bond outstanding that sells for $2,253 and matures in 22 years. The bond pays semiannual coupons and has a coupon rate of 8 percent. The face value is $2,000. If the company's tax rate is 21 percent, what is the aftertax cost of debt?

3.74%

5.01%

5.43%

6.31%

4.08%

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