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Mojo Mining has a bond outstanding that sells for $2,201 and matures in 21 years. The...

Mojo Mining has a bond outstanding that sells for $2,201 and matures in 21 years. The bond pays semiannual coupons and has a coupon rate of 7.38 percent. The par value is $2,000. If the company's tax rate is 40 percent, what is the aftertax cost of debt?

Choices:

3.90%

6.66%

6.22%

3.69%

4.23%

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