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Business, 20.12.2019 02:31 MichaelG07

At the present time, omni consumer products company (ocp) has 5-year noncallable bonds with a face value of $1,000 that are outstanding. these bonds have a current market price of $1,229.24 per bond, carry a coupon rate of 10%, and distribute annual coupon payments. the company incurs a federal-plus-state tax rate of 40%. if ocp wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? (note: round your ytm rate to two decimal place.)

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