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Shanken Corp. issued a bond with a maturity of 10 years and a semiannual coupon rate of 10 percent 4 years ago. The bond currently

Shanken Corp. issued a bond with a maturity of 10 years and a semiannual coupon rate of 10 percent 4 years ago. The bond currently sells for 94 percent of its face value. The companys tax rate is 35 percent.

What is the pre tax cost of debt?

What is the aftertax cost of debt?

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