Question: Mojo Mining has a bond outstanding that sells for $2,147 and matures in 15 years. The bond pays semiannual coupons and has a coupon rate

Mojo Mining has a bond outstanding that sells for $2,147 and matures in 15 years. The bond pays semiannual coupons and has a coupon rate of 6.9 percent. The par value is $2,000. If the company's tax rate is 40 percent, what is the aftertax cost of debt?

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