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Neptune Corporation's bonds have 15 years to maturity and a coupon rate of 8%. Interest is paid semi-annually. The bonds sold at par value, but
Neptune Corporation's bonds have 15 years to maturity and a coupon rate of 8%. Interest is paid semi-annually. The bonds sold at par value, but the firm paid flotation costs amounting to 3% of par value. The firm has a marginal tax rate of 21%. What is the firm's after-tax cost of debt for these bonds?
Group of answer choices
8.00%
5.93%
6.60%
8.36%
6.38%
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