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BP has a bond outstanding with 15 years to maturity, a $1,000 par value, a coupon rate of 6.3%, with coupons paid semiannually, and a

BP has a bond outstanding with 15 years to maturity, a $1,000 par value, a coupon rate of 6.3%, with coupons paid semiannually, and a price of 86.87 (percent of par).

What is the cost of debt?

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