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What is the after-tax cost of debt

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A company has outstanding long-term bonds with a face value of $1,000, a 10% coupon rate, 25 years remaining until maturity, and a current market value of $1,214.82. If it pays interest semi-annually, then what is the nominal annual pre-tax cost of debt (YTM)? If the company's tax rate is 40%, what is the after-tax cost of debt?

Reference no: EM132596548

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