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KatyDid Clothes has a $150 million (face value) 25-year bond issue selling for 102 percent of par that carries a coupon rate of 11 percent,

KatyDid Clothes has a $150 million (face value) 25-year bond issue selling for 102 percent of par that carries a coupon rate of 11 percent, paid semiannually. What would be KatyDid's before-tax component cost of debt? (Round your answer to 2 decimal places.)

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