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Pittsburgh Metals has 8% bonds outstanding. The bonds mature in 18 years. and pay interest semi-annually. The current price quote is 99.6% of face value

Pittsburgh Metals has 8% bonds outstanding. The bonds mature in 18 years. and pay interest semi-annually. The current price quote is 99.6% of face value and the tax rate is 34%. What is the after tax cost of debt.

A) 5.19% B) 5.27% C) 5.31% D) 5.40%

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