Question: A bond that has a $1000 par value (face value) and a contract or coupon interest rate of 11.7 percent. Interest payments are $58.50 and

A bond that has a $1000 par value (face value) and a contract or coupon interest rate of 11.7 percent. Interest payments are $58.50 and are paid semiannually. The bonds have a current market value of $1128 and will mature in 10 years. The firm's marginal tax rate is 34 percent. What is The after-tax cost of debt?

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