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Calculate the before-tax cost

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Problem 1: Tomtom Co. issued a 10-year bond, with a coupon of 3%, making semiannual payments and a par value of $1,000. The bond currently sells for 95% of par. The company's tax rate is 21%. Calculate the before-tax cost of debt. (Enter percentages as decimals and round to 4 decimals)

Reference no: EM132950911

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