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How do you calculate the before tax component cost of debt? Oberon, Inc., has a $30 million (face value) 10-year bond issue selling for 95

How do you calculate the before tax component cost of debt?

Oberon, Inc., has a $30 million (face value) 10-year bond issue selling for 95 percent of par that pays an annual coupon of 8.45 percent.

What would be Oberon's before-tax component cost of debt?(Round your answer to 2 decimal places.)

Cost of debt%

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