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Problem 5 King Fisher Aviation issued a 25 year, 6.8 percent semiannual bond 8 years ago. The bond sells today for 110 percent of its

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Problem 5 King Fisher Aviation issued a 25 year, 6.8 percent semiannual bond 8 years ago. The bond sells today for 110 percent of its face value. The tax rate is 40%. 1. What is the pretax cost of debt? 2 What is the after-tax cost of debt? 3. Which is more relevant, the pretax or the after-tax cost of debt? Why? Fit in Ules in the Speadnet

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