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VibratoJazz Co . has a bond issue outstanding that matures in 7 years. These $ 1 0 0 0 face value bonds pay interest annually.

VibratoJazz Co. has a bond issue outstanding that matures in 7 years. These $1000 face value bonds pay interest annually. Currently, the bonds are quoted at 95 percent of face value and carry a 6.0 percent coupon. What is the firm's after-tax cost of debt if the tax rate is 25 percent? (Choose the closest answer, your answer may vary very slightly based on rounding)

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