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Fidelity is planning a zero coupon bond issue

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Fidelity is planning a zero coupon bond issue. The bond has a par value of $2,000, and will mature in 3 years, It will be sold at a price of $750. The firm's marginal tax rate is 30 percent. Need the annual after-tax cost of debt to the company on this issue. Please show work.

Reference no: EM132199991

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