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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, 6 . 5

You are analyzing the after- tax cost of debt for a firm. You know that the firm's 12 year maturity, 6.50 percent semiannual coupon bonds are selling at a price of $610 assuming that these bonds are the only debt outstanding for the firm. what is the after-tax cost of debt for this firm if it has a marginal tax rate of 34 percent? after-tax cost of debt %?

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