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National Bank just issued a new 40-year, non-callable bond at par. This bond requires a coupon rate of 14% with semiannual payments and has a

National Bank just issued a new 40-year, non-callable bond at par. This bond requires a coupon rate of 14% with semiannual payments and has a par value of $1,000. The tax rate is 25%. What is the after-tax cost of debt?

The after-tax cost of debt for National Bank is %. (Round to two decimal places.)

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