What is after-tax cost of debt

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Reference no: EM131916192

Rover's Dog Care has outstanding debt currently selling for $870 per bond. It matures in 18 years, pays interest semiannually, and has a coupon rate of 9%. If par is $1,000 and the tax rate is 38%, what is the? after-tax cost of debt? The after-tax cost of debt for Rover's Dog Care is __%. (Round to two decimal places.)

Reference no: EM131916192

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