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A firm raises $30 million by selling equity and debt. If the debt pays $1 million coupons a year and $18 million maturity value after

A firm raises $30 million by selling equity and debt. If the debt pays $1 million coupons a year and $18 million maturity value after 10 years will sell for $20 million.

What is the cost of debt? Please provide explanation along with any formulas.

Thanks

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