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XYZ has an outstanding bond. It's a 4% semiannual coupon bond maturing in 4 years with a par value of $100 and is trading at

XYZ has an outstanding bond. It's a 4% semiannual coupon bond maturing in 4 years with a par value of $100 and is trading at $95. Income tax rate is 25%. Calculate the after-tax cost of debt for XYZ

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