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The coupon rate on an issue of debt is 12%. The yield to maturity on this issue is 9%. The corporate tax rate is 37%.

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The coupon rate on an issue of debt is 12%. The yield to maturity on this issue is 9%. The corporate tax rate is 37%. What would be the approximate after-tax cost of debt for a new issue of bonds? (Round your answer to 2 decimal places.) Multiple Choice 5.67% O 7.82% 4.32% O

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