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What is the after-tax cost of debt for micro spinoffs

Question:

Micro Spinoffs, Inc., issued 20-year debt one year ago at par value carrying a coupon rate of 8 percent (payable annually). Today, the debt is selling at $1,050. If the firm's tax bracket is 35 percent, what is the after-tax cost of debt for Micro Spinoffs?

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Finance Basics: What is the after-tax cost of debt for micro spinoffs

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