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MMM has 1 0 0 , 0 0 0 bonds outstanding that pay $ 2 5 every six months. The bonds currently sell for $

MMM has 100,000 bonds outstanding that pay $25 every six months. The bonds currently sell for $880 and mature in 5 years. The U.S. Treasury bill (rf) is yielding 2% and the expected market return is 12%. What is MMM's before-tax cost of debt capital?

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