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X Ltd has 7% bonds (redeemable in 8 years). The stock market price (ex-interest) of the bond is $89 per $100 bond. Corporation tax is

X Ltd has 7% bonds (redeemable in 8 years). The stock market price (ex-interest) of the bond is $89 per $100 bond. Corporation tax is currently 40%. Calculate the after-tax cost of the redeemable bond.

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