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Lux Ltd issued 10-year bonds with a coupon rate of 5% and a face value of $1,000. The coupon interest is paid semi-annually. The bonds

Lux Ltd issued 10-year bonds with a coupon rate of 5% and a face value of $1,000. The coupon interest is paid semi-annually. The bonds are expected to mature in 5-years. The bonds are trading currently at a price of $965 each. Determine the appropriate after-tax cost of debt for Lux Ltd. Assume a 30% tax rate. Question 13 options: 4.07% 5.97% 6.26% 4.67%

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