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Your firm has a $250,000 bond issue outstanding. These bonds have a coupon rate of 7 percent, pay interest semiannually, and have a current market

Your firm has a $250,000 bond issue outstanding. These bonds have a coupon rate of 7 percent, pay interest semiannually, and have a current market price equal to 103 percent of face value. What is the amount of the annual interest tax shield given a tax rate of 35 percent?

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