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A year ago, a company issued 10-year bonds with 6% coupon to be paid semiannually. Today, the bonds are currently being traded at 93% of

A year ago, a company issued 10-year bonds with 6% coupon to be paid semiannually. Today, the bonds are currently being traded at 93% of their face value. What is the company's cost of debt (before taxes) based on these bonds?

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5.74% per year

2.87% per year

3.53% per year

7.06% per year

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