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The 5 % coupon bond of the company is sold at $ 9 0 0 , and has 5 years before it matures, and its

The

5 %

coupon bond of the company is sold at $

900,

and has

5

years before it matures, and its standard tax rate is

25 % .

.

Calculate the before tax cost of bonds.

.

Calculate the after tax cost of bonds.

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