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Belton Distribution Company is issuing a â$1,000 par value bond that pays 7.0 percent annual interest and matures in 15 years that is paid semiannually. Investors are willing to pay â$958 for the bond. The company is in the18 percent marginal tax bracket.
Theâ firm's after-tax cost of debt on the bond is ---------% â(Round to two decimalâ places.)
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