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You are analyzing the after - tax cost of debt for a firm . You know that the firm's 1 2 - year maturity ,

You are analyzing the after

-

tax cost of debt for a firm

.

You know that the firm's

12 -

year maturity

, 14.50

percent semiannual coupon bonds are selling at a price of $

1, 090 .

Assuming that these bonds are the only debt outstanding for the firm

.

What is the current YTM of the bonds?

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