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Oberon, Inc., has a $15 million (face value) 12-year bond issue selling for 97 percent of par that pays an annual coupon of 8.10 percent.

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Oberon, Inc., has a $15 million (face value) 12-year bond issue selling for 97 percent of par that pays an annual coupon of 8.10 percent. What would be Oberon's before-tax component cost of debt? (Round your answer to 2 decimal places.) Cost of debt ____________ %

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