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Problem 3. Show all work such as formulas. FitBite, Inc. currently has an outstanding bond that pays interest annually, a coupon rate of 6%, and

Problem 3. Show all work such as formulas. image text in transcribed
FitBite, Inc. currently has an outstanding bond that pays interest annually, a coupon rate of 6%, and 5 years until maturity. If it is in the 35% marginal tax rate, what is its after-tax cost of debt? What is the after-tax cost of debt if it pays interest annually

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