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Suppose Snap Chat is issuing $600,000 worth of bond with an annual coupon rate of 8%, maturing in 5 years. If the Flotation cost is

Suppose Snap Chat is issuing $600,000 worth of bond with an annual coupon rate of 8%, maturing in 5 years. If the Flotation cost is expected to be 4% of the bond price and the company is in a 20% tax bracket, what is the firm's after-tax cost of debt on the bond? (State your answer in percentage with two decimal point)

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