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J + Inc. has $ 5 million in outstanding debt on bonds at an interest rate of 12%. The current yield to maturity is 14%

J + Inc. has $ 5 million in outstanding debt on bonds at an interest rate of 12%. The current yield to maturity is 14% (yield to maturity). The corporation is taxed at a 40% tax rate. What is the cost of debt for J + B Inc.?

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