What is firm after-tax cost of debt

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Reference no: EM131531802

A company’s 6% coupon rate, semiannual payment, $1000 par value bond that matures in 20 years sells for $545. The company’s marginal tax rate (state plus federal) is 35%. What is the firm’s after-tax cost of debt for the purposes of calculating WACC.

Reference no: EM131531802

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