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The face value of Charni Road debt is $2,000. The debt sells in the market for $1,870; makes semi-annual payments, and has a coupon of

The face value of Charni Road debt is $2,000. The debt sells in the market for $1,870; makes semi-annual payments, and has a coupon of 6.8 percent. If the debt matures in 20 years, what is Charni Road's after tax cost of debt if the tax rate is 35 percent?

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