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You are analyzing the cost of debt for a firm. You know that the firms 14-year maturity, 6.6% coupon bonds are selling at a price

You are analyzing the cost of debt for a firm. You know that the firms 14-year maturity, 6.6% coupon bonds are selling at a price of $844.00. The bonds pay interest semiannually. If these bonds are the only debts outstanding, answer the following questions.

Current YTM for the bonds = 9%

What is the after-tax cost of debt for this firm if it is subject to 30% marginal and average tax rates? After tax cost of debt is...

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