What is the after-tax cost of debt

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A $1,000 par bond is currently selling for $1,100. It has a 9% coupon rate, fifteen years remaining to maturity, and pays interest semi-annually. If the firm's tax rate is 35%, what is the after-tax cost of debt?

9.00%

7.84%

6.07%

5.85%

5.10%

Reference no: EM131016094

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