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A firm has a bond issue outstanding and wants to know its pre-tax cost of debt. Each bond has a $1,000 par value, 10 years

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A firm has a bond issue outstanding and wants to know its pre-tax cost of debt. Each bond has a $1,000 par value, 10 years to maturity, a 5% coupon rate, and currently sells for $990. The bond pays coupons twice per year or semiannually. What is the company's pre-tax cost of debt? Enter your answer as a percent rounded to 2 decimal places (e.g., 12.35)

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