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Company A has one issue of bonds outstanding. The bonds pay a 4.20 percent semiannual coupon, mature in 10 years, and currently sell at 98.00

Company A has one issue of bonds outstanding. The bonds pay a 4.20 percent semiannual coupon, mature in 10 years, and currently sell at 98.00 percent of par. Calculate the company's required return on debt.

R debt = _ % (don't round steps)

g = 5.70%

R equity = 13.52%

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