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2. Calculate the annual cost of debt for the following semi-annual bond. The years left to maturity is 12 years, the coupon rate is 6%

2. Calculate the annual cost of debt for the following semi-annual bond. The years left to maturity is 12 years, the coupon rate is 6% and the coupons are paid semi-annually. The face (par) value is $1,000 and the bond currently sells for $976.

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