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Several years ago the Jakob Company sold a $1,000 par value, fixed-coupon bond that now has 20 years to maturity and a 7.00% annual coupon

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Several years ago the Jakob Company sold a $1,000 par value, fixed-coupon bond that now has 20 years to maturity and a 7.00% annual coupon that is paid annually, The bond currently sells for $825, and the company's tax rate is 30%. What is the after-tax cost of debt for use in the WACC calculation? 5 6

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