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Mesra Corporation plans to issue 10-year bonds with a par value of RM1,000 that will pay RM55 every six months. The net amount of capital

Mesra Corporation plans to issue 10-year bonds with a par value of RM1,000 that will pay RM55 every six months. The net amount of capital to the firm from the sale of each bond is RM840.68. If Mesra is in the 25% tax bracket, what is the after-tax cost of debt?

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