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TPC Incorporateds currently outstanding 12% coupon bonds have a yield to maturity of 8.7%. TPC believes it could issue new bonds at par that would

TPC Incorporateds currently outstanding 12% coupon bonds have a yield to maturity of 8.7%. TPC 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 TPCs after-tax cost of debt?

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