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New Jet Airlines plans to issue 15-year bonds with a par value of $1,000 that will pay $30 every six months. The bonds have a

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New Jet Airlines plans to issue 15-year bonds with a par value of $1,000 that will pay $30 every six months. The bonds have a market price of $1,040. Flotation costs on new debt will be 8%. If the firm has a 35% marginal tax bracket, what is cost of existing debt

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