What is the pre-tax cost of debt and after-tax cost of debt

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App Invent Inc. issued a 30-year bond 20 years ago with a 10% coupon rate, compounded semi-annually. The bond currently sells for 117.5 percent of its face value. The company's tax rate is 40 percent. What is the pre-tax cost of debt? What is the after-tax cost of debt?

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Reference no: EM131493312

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