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What is the pretax cost of debt

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Reference no: EM133076689

Suspect Corp. issued a bond with a maturity of 30 years and a semiannual coupon rate of 6 percent 3 years ago. The bond currently sells for 92 percent of its face value. The company's tax rate is 35 percent.

a. What is the pretax cost of debt?

Pretax cost of debt

b. What is the aftertax cost of debt?

Aftertax cost of debt

Reference no: EM133076689

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