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8.61 is not the answer Oberon, Incorporated has a $40 million (face value) 10-year bond issue selling for 97 percent of par that pays an

8.61 is not the answer

Oberon, Incorporated has a $40 million (face value) 10-year bond issue selling for 97 percent of par that pays an annual coupon of 8.15 percent. What would be Oberon's before-tax component cost of debt? Note: Round your answer to 2 decimal places

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