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Tomtom Co. issued a 20-year bond, with a coupon of 8%, making semiannual payments and a par value of $1,000. The bond currently sells for

Tomtom Co. issued a 20-year bond, with a coupon of 8%, making semiannual payments and a par value of $1,000. The bond currently sells for 90% of par. The company's tax rate is 21%.

a) Calculate the before-tax cost of debt. (Enter percentages as decimals and round to 4 decimals)

b) Calculate the after-tax cost of debt. (Enter percentages as decimals and round to 4 decimals)

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