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Ratu Ltd is planning to issue bonds with 4 years to maturity and a face value of $100. The coupon rate of the bonds is
Ratu Ltd is planning to issue bonds with 4 years to maturity and a face value of $100. The coupon rate of the bonds is 6.5% and coupons are paid annually. Ratu expects the net proceeds from each bond issued to be $95. Given the tax rate is 30%, determine the before- and after-tax cost of debt using either the trial and error method or by calculating the IRR
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