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What is the? firm after-tax cost of debt on the? bond

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Question 1: Belton Distribution Company is issuing a ?$1,000 par value bond that pays 7.2 percent annual interest and matures in 15 years that is paid semiannually. Investors are willing to pay ?$963 for the bond. The company is in the 19 percent marginal tax bracket. What is the? firm's after-tax cost of debt on the? bond?

Reference no: EM132873415

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