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Simple Corp. has one bond issue oustanding, with a maturity of 10.5 years, a coupon rate of 3.8% and a yield to maturity of 5%.

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Simple Corp. has one bond issue oustanding, with a maturity of 10.5 years, a coupon rate of 3.8% and a yield to maturity of 5%. Simple Corp.'s average tax rate is 18% and its marginal tax rate is 30%. What is the after-tax cost of debt

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