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Tiny Tots has debt outstanding, currently selling for $860 per bond. It matures in 11 years, pays interest annually, and has a 9% coupon rate.

Tiny Tots has debt outstanding, currently selling for $860 per bond. It matures in 11 years, pays interest annually, and has a 9% coupon rate. Par is $1,000, and the firm's tax rate is 38%. What is the after-tax cost of debt?

The after-tax cost of debt for Tiny Tots is %

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