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XZ company is issuing a $1,000 par value bond that pays 8% interest annually. Investors are expected to pay $936 for the 8-year bond. What

XZ company is issuing a $1,000 par value bond that pays 8% interest annually. Investors are expected to pay $936 for the 8-year bond. What is the after-tax cost of debt if the firm is in the 29% tax bracket?

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