Question quarri industries has 8 percent coupon bonds, Ask an Expert

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Question: Quarri Industries has 8 percent coupon bonds outstanding. These bonds have a market price of $944.41, pay interest semiannually, and will mature in 6 years. If the tax rate is 35 percent, what are the pre-tax cost and after-tax cost of this debt? (Round answers to 2 decimal places, e.g. 52.75%)

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