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XYZ Co. issues $1,000 par value, 8.4% semiannual coupon bonds, with 15 years to maturity. The company sells the bonds for $750. Find the after-tax

XYZ Co. issues $1,000 par value, 8.4% semiannual coupon bonds, with 15 years to maturity. The company sells the bonds for $750. Find the after-tax cost of debt assuming a tax rate of 35%.

9.98%

7.83%

8.32%

6.02%

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