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In March of 2020, PepsiCo, Inc. (PEP) sold $750 million worth of 35-year 4.75% coupon bonds that pay semi-annual interest. At the time the bonds were issued, the market paid $1,004.04 per bond and the flotation cost was $18.52 per bond. Pepsi's corporate tax rate is 21%. Ignoring flotation costs, what is Pepsi's before-tax and after-tax costs of debt?
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