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What is the after-tax cost of debt

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Question - Jiminy's Farm issued a 30-year, 6 per cent semiannual bond three years ago. The bond currently sells for 93 per cent of its face value. The company's tax rate is 30 per cent.

a) What is the pretax cost of debt?

b) What is the after-tax cost of debt?

Reference no: EM133092723

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