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What is the firm after-tax cost of debt for bonds

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Neptune Corporation's bonds have 15 years to maturity and a coupon rate of 9%. Interest is paid semi-annually. The bonds sold at par value, but the firm paid flotation costs amounting to 4% of par value. The firm has a marginal tax rate of 21%. What is the firm's after-tax cost of debt for these bonds?

Reference no: EM133005028

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