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The firm issued 43.9 million bonds at a face value of $1000. The coupon on the bonds are 4% paid semiannually and the yield of
The firm issued 43.9 million bonds at a face value of $1000. The coupon on the bonds are 4% paid semiannually and the yield of the bonds are currently, 10.82%. The corporate marginal tax rate is 35%. What is the after-tax cost of debt for the firm? (Answer to 2 decimal places in percent, so that 6.25% is 6.25).
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