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Your firm has just issued a 10-year $1,000.00 par value, 6% coupon semiannual bond for a net price of $964.00. The firm's tax rate is

Your firm has just issued a 10-year $1,000.00 par value, 6% coupon semiannual bond for a net price of $964.00. The firm's tax rate is 28%.

1. Annual YTM ~ cost of debt is _____%.

2. The after tax cost of debt is _________%.

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