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Quarri Industries has 8 percent coupon bonds outstanding. These bonds have a market price of $955.41, pay interest semiannually, and will mature in 6 years.

Quarri Industries has 8 percent coupon bonds outstanding. These bonds have a market price of $955.41, pay interest semiannually, and will mature in 6 years. If the tax rate is 35 percent, what are the pre-tax cost and after-tax cost of this debt?

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