Question: The Current Yield to Maturity is 8.6% while the coupon rate equals 10% for a bond. The tax Rate = 35%, and these bonds represent

The Current Yield to Maturity is 8.6% while the coupon rate equals 10% for a bond. The tax Rate = 35%, and these bonds represent 35.3% of the firms funding sources. The Beta equals 1.7. Calculate the weighted after-tax cost of this bond component.

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