Question: A company issues a 2 0 - year semi - annual coupon payment bond with a coupon rate of 1 1 . 0 0 %

A company issues a 20-year semi-annual coupon payment bond with a coupon rate of 11.00%. It receives net $1,075.00 for each newly issued bond. The tax rate is 40%. What is the after-tax cost of debt for the company?

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