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Klein Corp. can issue $1,000 par value bond that pays $100 per year in interest at a price of $980. The bond will have a

Klein Corp. can issue $1,000 par value bond that pays $100 per year in interest at a price of $980. The bond will have a 5-year life. The firm is in a 35% tax bracket. What is the after-tax cost of debt?

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