Question: Supposed we have a bond issue currently outstanding that has 18 years left to maturit. The coupon rate is 7% and coupons are paid semiannually.

Supposed we have a bond issue currently outstanding that has 18 years left to maturit. The coupon rate is 7% and coupons are paid semiannually. The bond is currently selling for 912.21 per $1000 bond what is the after tax cost of debt if the tax rate is 35%?

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