Question: Tiny Tots has debt outstanding, currently selling for $920 per bond. It matures in 20 years, pays interest annually, and has a 6%coupon rate. Par

Tiny Tots has debt outstanding, currently selling for $920 per bond. It matures in 20 years, pays interest annually, and has a 6%coupon rate. Par is

$1,000, and the firm's tax rate is 20%.

What is the after-tax cost of debt?

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