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VibratoJazz Co. has a bond issue outstanding that matures in 24 years. These $1000 face value bonds pay interest annually. Currently, the bonds are quoted
VibratoJazz Co. has a bond issue outstanding that matures in 24 years. These $1000 face value bonds pay interest annually. Currently, the bonds are quoted at 96 percent of face value and carry a 9.5 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) Select one: a. 7.46 percent b. 9.94 percent c. 8.20 percent d. 8.58 percent
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