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The coupon rate on an issue of debt is 12%. The yield to maturity on this issue is 11%. The corporate tax rate is 31%.

The coupon rate on an issue of debt is 12%. The yield to maturity on this issue is 11%. The corporate tax rate is 31%. What would be the approximate after-tax cost of debt for a new issue of bonds? Note: Round your answer to 2 decimal places. Multiple Choice 9.74% 6.24% 7.59% 9.04%

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