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Great Lakes Packing has two bond issues outstanding. The firstissue has a coupon rate of 3.62 percent, a par value of $2,000 perbond, matures in 8 years, has a total face value of $4.2 million,and is quoted at 103 percent of face value. The second issue has acoupon rate of 6.42 percent, a par value of $1,000 per bond,matures in 24 years, has a total face value of $8.5 million, and isquoted at 91 percent of face value. Both bonds pay interestsemiannually. The company's tax rate is 40 percent. What is thefirm's weighted average aftertax cost of debt?
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Basic Math
Accounting
Basic Math
Accounting
Accounting
Accounting