What is LL after-tax cost of debt

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Reference no: EM133020504

Question - LL Incorporated's currently outstanding 11% coupon bonds have a yield to maturity of 8.6%. LL believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 25%, what is LL's after-tax cost of debt? Round your answerwhat is LL's after-tax cost of debt? to two decimal places.

Reference no: EM133020504

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