Question: Cost of debt using the approximation formula For the following $1,000-par-value bond, assuming annual interese payment and a 27% tax rate calculate the after-tax cost

Cost of debt using the approximation formula For the following $1,000-par-value bond, assuming annual interese payment and a 27% tax rate calculate the after-tax cost to maturity using the approximation formula Life 5 years Underwriting fee Discount (-) premium (+) Coupon Interest rate - 530 The wher-tax cout of financing using the approximation formula is % (Round to two decimal places)

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