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Rattle me Bones, Inc. sold a 20-year bond issue 10 years ago. It pays a 10% semi-annual coupon and has a $1,000 face valuc. If

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Rattle me Bones, Inc. sold a 20-year bond issue 10 years ago. It pays a 10% semi-annual coupon and has a $1,000 face valuc. If the current price per bond is $1,089, what is the firm's after-tax cost of debt if the firm's tax rate is 35% and the floatation cost is 1% of the current market price? A) 8.81% B) 5.21% 7, C) D) 5.42% 5.73% IEA

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