Percent of face value

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One step Inc., is trying to determine its cost of debt. The firm has a dept issue outstanding with 20 years to maturity that is quoted at 95 percent of face value. The issue makes semiannual payments and has a coupon rate of 9 percent.

What is pretax cost of dept=?%

What is Aftertax cost of dept=?%

Reference no: EM132288978

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