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Riddle's Bakery has a bond issue outstanding that matures in 12 years. The bonds pay interest semiannually. Currently, the bonds are quoted at 94 percent

Riddle's Bakery has a bond issue outstanding that matures in 12 years. The bonds pay interest semiannually. Currently, the bonds are quoted at 94 percent of face value and carry a coupon rate of 12 percent. What is the firm's after tax cost of debt if the tax rate is 30 percent?

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