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Marysa Corp. issued a 15-year, 6 percent semiannual bond 4 years ago. The bond currently sells for 91 percent of its face value. The companys

Marysa Corp. issued a 15-year, 6 percent semiannual bond 4 years ago. The bond currently sells for 91 percent of its face value. The companys tax rate is 22 percent.

a. What is the pretax cost of debt?

b. What is the aftertax cost of debt?

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