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NC Inc. has a $10 million (face value), 10-year bond issue selling for 99 percent of par that pays an annual coupon of 8 percent.

NC Inc. has a $10 million (face value), 10-year bond issue selling for 99 percent of par that pays an annual coupon of 8 percent. What would be WC's before-tax component cost of debt?

Please show exact formula.

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