What is its after-tax cost of debt

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Reference no: EM131986048

Suppose a company currently has some bonds outstanding in the market. The bonds have 10 years until maturity, they pay a coupon rate of 6% on a semiannual basis. If the company’s bonds are selling for $965 now, and the company’s tax rate is 40%, what is its after-tax cost of debt?

Reference no: EM131986048

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