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KatyDid Clothes has a $160 million (face value) 20-year bond issue selling for 101 percent of par that carries a coupon rate of 12 percent

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KatyDid Clothes has a $160 million (face value) 20-year bond issue selling for 101 percent of par that carries a coupon rate of 12 percent paid semiannually. Whet would be Katydid's before-tax component cost of debt? (Round your answer to 2 decimal places.) Cost of debt [ ]

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