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Rover's Dog Care has outstanding debt currently selling for $850 per bond. It matures in 13 years, pays interest semiannually, and has a coupon rate

Rover's Dog Care has outstanding debt currently selling for

$850

per bond. It matures in

13

years, pays interest semiannually, and has a coupon rate of

12%.

If par is

$1,000

and the tax rate is

30%,

what is the after-tax cost of debt?

The after-tax cost of debt for Rover's Dog Care is

nothing%.

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