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Buckeye Partners has a bond issue currently outstanding that has 18 years left to maturity. The coupon rate is 9%, and coupons are paid semiannually.

Buckeye Partners has a bond issue currently outstanding that has 18 years left to maturity. The coupon rate is 9%, and coupons are paid semiannually. The bond is currently selling for $1,200 per $1,000 bond. What is the cost of debt?

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