What is the firms after tax cost of debt on the bond

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Reference no: EM131020538

A company is issuing a $1,000 par value bond that pays 7.0% annual interest and matures in 15 years that is paid semiannually. Investors are willing to pay $958 for the bond. The company is in the 18% marginal tax bracket. What is the firm's after tax cost of debt on the bond, rounded to 2 decimal places.

Reference no: EM131020538

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