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Ellie's Boutique has a bond issue outstanding that matures in a fourteen years. The bonds pay interest semi-annually. Currently, the bonds are priced at $870

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Ellie's Boutique has a bond issue outstanding that matures in a fourteen years. The bonds pay interest semi-annually. Currently, the bonds are priced at $870 and carry an 8 percent coupon. The face value of the bond is $1000. What is the firm's cost of debt? (Show your work for partial credit)

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