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has 15-year bonds outstanding with a coupon rate of 5 percent. Interest is paid annually. The face amount of each bond is $1,000. What is

has 15-year bonds outstanding with a coupon rate of 5 percent. Interest is paid annually. The face amount of each bond is $1,000. What is the company's pretax cost of debt if the bonds currently sell for $1,100?

5.22 percent

5.55 percent

4.09 percent

5.36 percent

4.71 percent

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