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Your firm has just issued a 20-year $1,000.00 par value, 10% annual coupon bond for a net price of $964.00. What is the cost of

Your firm has just issued a 20-year $1,000.00 par value, 10% annual coupon bond for a net price of $964.00. What is the cost of debt that should be used when computing the Weighted Average Cost of Capital? The firm is in the 25% tax bracket.

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