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Ted Products has a bond issue outstanding that matures in 12 years. The bonds pay interest semiannually. Currently, the bonds are selling for $1025, have

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Ted Products has a bond issue outstanding that matures in 12 years. The bonds pay interest semiannually. Currently, the bonds are selling for $1025, have a $1,000 face value and carry an 8.5% coupon. The firm's tax rate is 35 %. What is Ted's after-tax cost of debt? Select one: a. 7.29% b. 5.31% C.4.08% d. 6.84 % e. 8.17%

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