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A firm has outstanding debt (bonds) with a coupou rate of 8%, five years until maturity, and a price of SI 000 per 51.000 face

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A firm has outstanding debt (bonds) with a coupou rate of 8%, five years until maturity, and a price of SI 000 per 51.000 face value. The coapons are paid annually What is the after-tax cost of debt if the marginal tax rate of the fun is 25%? His First, find the yield to maturity on the debt (bonds), which is the before tax cost of debt 575 6004 540%

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