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Rappaport Industries has 5,200 perpetual bonds outstanding with a face value of $2,000 each. The bonds have a coupon rate of 6.7 percent and a

Rappaport Industries has 5,200 perpetual bonds outstanding with a face value of $2,000 each. The bonds have a coupon rate of 6.7 percent and a yield to maturity of 7.1 percent. The tax rate is 40 percent. What is the present value of the interest tax shield?

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