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Valence Manufacture issues a bond to finance a new factory.It offers a 3- year,$1,000 face value, 5% semi- annual coupon bond.Upon issue,the bond sells at
Valence Manufacture issues a bond to finance a new factory.It offers a 3- year,$1,000 face value, 5% semi- annual coupon bond.Upon issue,the bond sells at $1,025.lf Valence's marginal tax rate is 21%, What is Valence's after-tax cost of debt? Please show all steps in arriving at answer and explain.No financial calulators.
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