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Oberon, Inc., has a $15 million (face value) 10-year bond issue selling for 99 percent of par that pays an annual coupon of 8.35 percent.

Oberon, Inc., has a $15 million (face value) 10-year bond issue selling for 99 percent of par that pays an annual coupon of 8.35 percent. What would be Oberons before-tax component cost of debt? (Round your answer to 2 decimal places.)

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