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Micro Spinoffs Incorporated issued 2 0 - year debt a year ago at par value with a coupon rate of 7 % , paid annually.

Micro Spinoffs Incorporated issued 20-year debt a year ago at par value with a coupon rate of 7%, paid annually. Today, the debt is selling at $1,160. If the firms tax bracket is 21%, what is its percentage cost of debt? Assume a face value of $1,000.

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