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The Lewin Inc. has issued 60,000 bonds with an 8% coupon rate and a quoted price of 110; the bonds have 30 years to maturity;

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The Lewin Inc. has issued 60,000 bonds with an 8% coupon rate and a quoted price of 110; the bonds have 30 years to maturity; the bonds make annual payments; $1,000 par value, the corporate tax rate is 25%. What is the aftertax cost of the debt? (Note:7%

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