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KSS has $1000 par value bonds with a 10% coupon rate and coupons paid annually that mature in 15 years. The bonds are selling for
KSS has $1000 par value bonds with a 10% coupon rate and coupons paid annually that mature in 15 years. The bonds are selling for $1,100. KSS has an average tax rate of 30%. KSS is in the 40% marginal tax bracket. What is the after tax cost of debt? 5.27% 4.23% 3.53%
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