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Shanken Corp. issued a bond with a maturity of 10 years and a semiannual coupon rate of 6 percent 2 years ago. The bond currently

Shanken Corp. issued a bond with a maturity of 10 years and a semiannual coupon rate of 6 percent 2 years ago. The bond currently sells for 95 percent of its face value. The companys tax rate is 35 percent. a.What is the pretax cost of debt? b. What is the aftertax cost of debt?

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