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Oriolehas determined that it could issue $1350face value bonds with an9percent coupon paid semiannually and a5-year maturity at $1232.63per bond. IfOriole's marginal tax rate is35percent,
Oriolehas determined that it could issue $1350face value bonds with an9percent coupon paid semiannually and a5-year maturity at $1232.63per bond. IfOriole's marginal tax rate is35percent, its after-tax cost of debt is closest to:
7.4percent.
7.0percent.
7.1percent.
7.7percent.
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