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smith toolworks issued 2 0 year bonds 8 years ago with a 5 % coupon payment. The bonds are currently selling for 9 5 %

smith toolworks issued 20 year bonds 8 years ago with a 5% coupon payment. The bonds are currently selling for 95% of its face value, or $950. What is Smith Toolwork's after-tax cost of debt? Assume annual coupon payments and a 40% tax rate.

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