Jiminy's Cricket Farm issued a 30-year, 6 percent, semiannual bond 8 years ago. The bond currently sells for 97 percent of its face value. What is the after-tax cost of debt if the company's tax rate is 32 percent?
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4.00 percent |
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4.25 percent |
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4.70 percent |
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5.75 percent |
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6.25 percent |