Question: PQR Ltd . issued 2 0 , 0 0 , 0 0 0 worth of 5 - year bonds at an annual coupon rate of

PQR Ltd. issued 20,00,000 worth of 5-year bonds at an annual coupon rate of 9%. The company pays interest yearly and is in the 25% tax bracket. Calculate the cost of debt after tax for these bonds.

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