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A corporate bond was issued with a 10 year maturity and an annual coupon rate of 8%. Currently, it has 7 years to maturity with

A corporate bond was issued with a 10 year maturity and an annual coupon rate of 8%. Currently, it has 7 years to maturity with a quote of 110. What is the pretax cost of debt?

6.20%

6.60%

7.26%

7.70%

9.08%

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