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Madison Square Stores has a $20 million bond issue outstanding that currently has a market value of $19.4 million. The bonds mature in 65 years

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Madison Square Stores has a $20 million bond issue outstanding that currently has a market value of $19.4 million. The bonds mature in 65 years and pay semiannual interest payments of 535 each. What is the firm's pretax cost of debt? 8.21 percent 750 percent 07.08 percent 7.74 percent 7.80 percent

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