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What is the after tax cost of debt to pve

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Reference no: EM132528112

PVE, Inc. has $15 million of debt outstanding with a coupon rate of 9%. Currently, the yield to maturity on these bonds if 7%. If the firm's tax rate is 35%, what is the after tax cost of debt to PVE?

The answer shows as 4.55%, but I need assistance is how this was calculating.

Reference no: EM132528112

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