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Outstanding debt of Home Depot trades with a yield to maturity of 7%. The tax rate of Home Depot is 25% . What is the

Outstanding debt of Home Depot trades with a yield to maturity of 7%. The tax rate of Home Depot is 25% . What is the effective cost of debt of Home Depot?

A. 7.88%

B. 5.25%

C. 6.3%

D. 8.14%

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