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Company xyz is considering the issuance of a 2 0 year bond ( par value = $ 1 , 0 0 0 ) with a

Company xyz is considering the issuance of a

20

year bond

(

par value

=

1, 000)

with a

11 %

coupon rate and issuance costs of $

25

for each bond. Based on this information, the cost of debt before taxes of this bond is equal to:

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