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The coupon rate on an issue of debt is 9%. The yield to maturity on this issue is 9%. The corporate tax rate is 36%.

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The coupon rate on an issue of debt is 9%. The yield to maturity on this issue is 9%. The corporate tax rate is 36%. What would be the approximate aftertax cost of debt for a new issue of bonds? (Round your answer to 2 decimal places.) Multiple Choice 5.76% 7.21% 4.41% 7.91%

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