A firm has a debt issue outstanding with 7 years to, Financial Management

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A firm has a debt issue outstanding with 7 years to

A firm has a debt issue outstanding with 7 years to maturity that is quoted at 108% of face value. The issue makes semi-annual payments and has an embedded cost of 6.1% annually. What is the pre-tax cost of debt if the tax rate is 38%? What is the after-tax cost of debt?

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