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A firm has $90 million of bonds outstanding. The bonds have 7.4% annual coupon rate, pay semiannual coupons, and have 15 years to maturity. They

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A firm has $90 million of bonds outstanding. The bonds have 7.4% annual coupon rate, pay semiannual coupons, and have 15 years to maturity. They sell for 109% of par. What is the firm's pretax cost of debt, expressed as an EAR? Enter a number as a percentage with three digits after the decimal, such as 6.374 if the answer is 6.374%

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