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What is the after tax cost of debt

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Corporation has semiannual bonds outstanding with 14 years to maturity and the bonds are currently priced at $850. If the bonds have a coupon rate of 6 percent, then what is the after tax cost of debt for the Corporation if its marginal tax rate is 35%. Round your intermediate calculation to five decimal places and final percentage answer to two decimal places.

Reference no: EM133059926

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