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Mojo Mining has a bond outstanding that sells for $2,102 and matures in 20 years. The bond pays semiannual coupons and has a coupon rate
Mojo Mining has a bond outstanding that sells for $2,102 and matures in 20 years. The bond pays semiannual coupons and has a coupon rate of 6.5 percent. The par value is $2,000. If the company's tax rate is 21 percent, what is the aftertax cost of debt?
3.69% | ||
5.74% | ||
6.15% | ||
4.24% | ||
4.78% |
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