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Discuss what is the companys after tax cost of debt

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Fashion Wear has bonds outstanding that mature in 12 years, pay interest annually, and have a coupon rate of 7.5 percent. These bonds have a face value of $1,000 and a current market price of $1,060. What is the company's after tax cost of debt if its tax rate is 35 percent?

Reference no: EM131808610

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