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P9-4 Cost of debt using the approximation formula For each of the following $1,000-par- value bonds, assuming annual interest payment and a 21% tax rate,

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P9-4 Cost of debt using the approximation formula For each of the following $1,000-par- value bonds, assuming annual interest payment and a 21% tax rate, calculate the after- tax cost to maturity, using the approximation formula. Bond Life (years) Underwriting fee Discount (-) or premium (+) Coupon interest rate A 20 $25 -$20 9% B 16 40 +10 10 15 30 -15 12 D 25 15 par 9 E 22 20 -60 11

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