Currently outstanding bonds-after tax cost of the debt

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The Heuser company's currently outstanding bonds have a 7% coupon and 13% yield to maturity. Heuser believe it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 3.8%, what is Heuser's after tax cost of the debt. Round your answer to two decimal places.

Reference no: EM131012845

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