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A company's bonds have an 8% coupon rate (paid annually), a maturity of 10 years, a par value of $1,000 and a price of $1,100.

A company's bonds have an 8% coupon rate (paid annually), a maturity of 10 years, a par value of $1,000 and a price of $1,100. The corporate tax rate is 35%. What is the company's cost of debt

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