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tokyo food supplies corporation sold an issue of 12-year bonds. the bonds sold at $980 each. after issuance costs, tokyo food supplies received $945 each.

"tokyo food supplies corporation sold an issue of 12-year bonds. the bonds sold at $980 each. after issuance costs, tokyo food supplies received $945 each. the maturity value is $1,000 each and the coupon rate is 9% and paid annually. what is the after-tax cost of debt for these bonds if tokyo food supplies' marginal tax rate is 40%?"

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