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jay's Bakery has a bond issue outstanding that matures in 10 years. The bonds pay...

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Finance

jay's Bakery has a bond issue outstanding that matures in 10 years. The bonds pay interest semiannually. Currently, the bonds are quoted at 99.8 percent of face value and carry a coupon rate of 7.5 percent. What is the aftertax cost of debt if the tax rate is 21 percent?

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