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Jiminy's Cricket Farm issued a 30-year, 7.2 percent semiannual bond 8 years ago. The bond currently sells for 93.5 percent of its face value. The

Jiminy's Cricket Farm issued a 30-year, 7.2 percent semiannual bond 8 years ago. The bond currently sells for 93.5 percent of its face value. The companys tax rate is 34 percent. Required: (a) What is the pretax cost of debt?

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