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Jiminys cricket farm issued a 30-year 6 percent semiannual

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Jiminy's Cricket Farm issued a 30-year, 6 percent, semiannual bond 8 years ago. The bond currently sells for 97 percent of its face value. What is the after-tax cost of debt if the company's tax rate is 32 percent?
4.00 percent


4.25 percent


4.70 percent


5.75 percent


6.25 percent

Reference no: EM13382129

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