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Suppose we have a bond issue currently outstanding that has 25 years left to maturity. The coupon rate is 9% and coupons are paid semiannually.

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Suppose we have a bond issue currently outstanding that has 25 years left to maturity. The coupon rate is 9% and coupons are paid semiannually. The bond is currently selling for $908.72. If the firm's marginal tax rate is 20%. What's the firm's after-tax cost of debt? 8.0% 9.0% 10.0% 11.0%

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