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LL Incorporated's currently outstanding 8 % coupon bonds have a yield to maturity of 1 2 % . LL believes it could issue new bonds

LL Incorporated's currently outstanding

8 %

coupon bonds have a yield to maturity of

12 % .

LL believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is

40 %,

what is LL

'

s after

-

tax cost of debt? Round your answer to two decimal places.

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