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Winter Wear, Inc. has 6 percent bonds outstanding that mature in 13 years. The bonds pay interest semiannually and have a face value of $1,000.

Winter Wear, Inc. has 6 percent bonds outstanding that mature in 13 years. The bonds pay interest semiannually and have a face value of $1,000. Currently, the bonds are selling for $993 each. The company's tax rate is 25%. What is the firm's after-tax cost of debt? a) 6.08% b) 4.56% c) not enough info d) none

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