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This is the space where Investment Professionals can share their knowledge. The content will help the users to understand the basic concepts of investments, pass different levels (L1,L2 & L3) of CFA exam. This community is not limited to CFA members or candidates. Anyone interesting in learning or contributing their financial knowledge (regardless of geographical boundaries) is welcome here.

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A company has $5 million in debt outstanding with a coupon rate of 12 percent. Currently the YTM on these bonds is 14 percent. If the tax rate is 40 percent, what is the after tax cost of debt?

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