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Suppose your firm just issued a 20-year $1000 par value bond with semiannual coupons. The coupon interest rate is 6%. The bonds sold for par

Suppose your firm just issued a 20-year $1000 par value bond with semiannual coupons. The coupon interest rate is 6%. The bonds sold for par valuebut costs amounted to 5% of the priceYou have a 21% corporate tax rate. What is your firms cost of debt?

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