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The coupon rate on an issue of debt is 9%. The yleld to maturity on this issue is 10%. The corporate tax rate is 29%.

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The coupon rate on an issue of debt is 9%. The yleld to maturity on this issue is 10%. The corporate tax rate is 29%. 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 8.55% 7.10% 9.25% 5.75%

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