Question: cigna has a zero coupon bond issue. Bond has a par value of $2000 and will mature in 3 years. It will be sold for

cigna has a zero coupon bond issue. Bond has a par value of $2000 and will mature in 3 years. It will be sold for $750. Marginal tax rate is 30%.

Whar is the annual after tax cost of debt to the company of issue?

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