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VEC Inc currently has 3 , 2 2 0 , 0 0 0 zero coupon bonds outstanding, each with a face value of $ 1

VEC Inc currently has 3,220,000 zero coupon bonds outstanding, each with a face value of $1000. The bonds have a maturity of 4 years and they are traded in the market at 87% of par. If the tax rate is 28% what is the after tax cost of debt capital. the answer is 2.55% please show how they got this answer step by step

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