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KatyDid Clothes has a $170 million (face value) 20-year bond issue selling for 104 percent of par that carries a coupon rate of 13 percent,

KatyDid Clothes has a $170 million (face value) 20-year bond issue selling for 104 percent of par that carries a coupon rate of 13 percent, paid semiannually.

What would be KatyDid's before-tax component cost of debt?(Round your answer to 2 decimal places.)

Cost of debt%

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