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X Inc. has one issue of debt outstanding. It is a 21-year debt issued 7 years ago at par value with a coupon rate of

X Inc. has one issue of debt outstanding. It is a 21-year debt issued 7 years ago at par value with a coupon rate of 4.3%, paid annually. Today, the debt is still selling at par value. If the firms tax bracket is 21%, what is its after-tax cost of debt? Assume a face value of $1,000.

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