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One Step, Inc., is trying to determine its cost of debt. The firm has a...

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Finance

One Step, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 20 years to maturity that is quoted at 95 percent of face value. The issue makes semiannual payments and has a coupon rate of 9 percent.

What is the company's pretax cost of debt?

If the tax rate is 21 percent, what is the after tax cost of debt?

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