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AC Corp has issued debt with 6% coupon rate. The debt pays semi-annual coupons, and...

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AC Corp has issued debt with 6% coupon rate. The debt pays semi-annual coupons, and the next coupon is due in six months and the debt matures in five years. It is currently priced at 95% of par value (\$100). What is AC's pretax cost of debt (annualized YTM)? IF AC's tax rate is 40%, what is its after-tax cost of debt

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