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The Holmes Company's currently outstanding bonds have a coupon rate of 7.6%, and a yield to maturity of 7.3%. Holmes believes it could issue new
The Holmes Company's currently outstanding bonds have a coupon rate of 7.6%, and a yield to maturity of 7.3%. Holmes believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 29%, what is Holmes' after-tax cost of debt? State your answer as a percentage to 2 decimal places. Do not include the % symbol.
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