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Peytons Colt Farm issued a 30-year, 9.2 percent semiannual bond 8 years ago. The bond currently sells for 88.5 percent of its face value. The

Peytons Colt Farm issued a 30-year, 9.2 percent semiannual bond 8 years ago. The bond currently sells for 88.5 percent of its face value. The companys tax rate is 34 percent.

What is the pretax cost of debt?

What is the aftertax cost of debt?

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