What is after-tax cost of debt

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After-tax Cost of Debt

The Holmes Company currently outstanding bonds have a 10% coupon and a 14% Yield to maturity. Holmes believes it could issue new bonds at Par that would provide a under yield to maturity. If its marginal the rate is 40%, what is Holmes's after-tax cost of dept? Round your answer to decimal places.

Reference no: EM131552308

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