Te bonds willbe sold today at a price of 82645 if the

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Claus & Co. is planning a zero coupon bond issue that hasa par value of $1,000 and matures in 2 years. The bonds willbe sold today at a price of $826.45. If the firm'smarginal tax rate is 40%, what is the annual after-tax cost of debtto the company on this issue?

Reference no: EM13570932

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