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Jiminy's Cricket Farm issued a 30-year, 10.6 percent semiannual bond 6 years ago. The bond currently sells for 85 percent of its face value. The

Jiminy's Cricket Farm issued a 30-year, 10.6 percent semiannual bond 6 years ago. The bond currently sells for 85 percent of its face value. The companys tax rate is 38 percent. What is the pretax cost of debt?

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