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Crowell Inc. issued 20 -year, 4 percent semiannual coupon bonds with par value of $1,000. The bond price is quoted at 110% of the par.

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Crowell Inc. issued 20 -year, 4 percent semiannual coupon bonds with par value of $1,000. The bond price is quoted at 110% of the par. What is its pre-tax cost of debt? 1.66 percent 2.79 percent 3.31 percent 4.66 percent

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