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10. Jimmy's Cricket Farm issued a 30-year, 4.5 percent semiannual bond four years ago. The bond currently sells for 107 percent of its face value.

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10. Jimmy's Cricket Farm issued a 30-year, 4.5 percent semiannual bond four years ago. The bond currently sells for 107 percent of its face value. The company's tax rate is 25 percent. What is the pretax cost of debt? A. 2.85% B. 3.47% C. 4.06% D. 5.63%

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