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Nimrod Co. has bonds outstanding with a yield to maturity of 9.56%. These bonds pay a semiannual coupon of 5% and the current yield is

Nimrod Co. has bonds outstanding with a yield to maturity of 9.56%. These bonds pay a semiannual coupon of 5% and the current yield is 4.60%. If the corporate tax rate is 25%, what is the after-tax cost of debt to this firm?

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