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The companys bonds (20-year maturity, par value $1000, semiannual payment) are 5% coupon rate and sell at a market price of $1055. New bonds will
The companys bonds (20-year maturity, par value $1000, semiannual payment) are 5% coupon rate and sell at a market price of $1055. New bonds will have a flotation cost of $5 per bond. The companys tax rate is 34%. What is the after-tax cost of debt?
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