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A company has in issue 12% redeemable debt with 5 years to redemption. Redemption is at par. The current market value of the debt is

A company has in issue 12% redeemable debt with 5 years to redemption. Redemption is at par. The current market value of the debt is $107.59. The corporation tax rate is 30%. What is the return required by the debt providers (pretax cost of debt)

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