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Oberon, Inc., has a $25 million (face value) 8-year bond issue selling for 94 percent of par that pays an annual coupon of 8.25 percent.

Oberon, Inc., has a $25 million (face value) 8-year bond issue selling for 94 percent of par that pays an annual coupon of 8.25 percent. What would be Oberons before-tax component cost of debt?

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