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The Watson Company's currently outstanding bonds have a 5% coupon and a 10% yield to maturity. Watson believes it could issue new bonds at par

The Watson Company's currently outstanding bonds have a 5% coupon and a 10% yield to maturity. Watson believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 30%, what is Watson's after-tax cost of debt?

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