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Calculate the After Tax Cost of Debt Question 9-1 Calculate the after tax cost of debt under each of the following conditionsInterest rate of 13%, tax rate of 0%Solution:Given,Interest rate (rd) = 13%Tax rate (T) = 0%Now,To calculate the after-tax cost of debtWe have,After-tax cost of debt = rd (1-T) = 13% ( 1-0) = 13%Therefore,.