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USA Manufacturing issued 3 0 - year, 7 . 5 percent semiannual bonds 6 years ago. The bonds currently sell at 1 0 1 percent

USA Manufacturing issued 30-year, 7.5 percent semiannual bonds 6 years ago. The bonds currently sell at 101 percent of face value. What is the firm's aftertax cost of debt if the tax rate is 35 percent, if the flotation cost is 5%?

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