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A firm has a bond outstanding with a coupon rate of 6 percent and semiannual payments. The bond currently sells for $900 and matures in

A firm has a bond outstanding with a coupon rate of 6 percent and semiannual payments. The bond currently sells for $900 and matures in 20 years. The face value is $1,000. What is the company's pretax cost of debt?

6.98%

3.47%

6.93%

7.25%

6.54%

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