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Viserion inc. is trying to determine its cost of debt. The firm has a debt issue outstanding with 22 years to maturity that is quoted
Viserion inc. is trying to determine its cost of debt. The firm has a debt issue outstanding with 22 years to maturity that is quoted at 94% of face value. The issue makes semiannual payments and has an embedded cost of 6 percent annually. What is the company's pretax cost of debt? If the tax rate is 21 percent, what is the aftertax cost of debt?
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