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Oberon, Incorporated has a $20 million (face value) 12-year bond issue selling for 95 percent of par that pays an annual coupon of 8.20 percent.

Oberon, Incorporated has a $20 million (face value) 12-year bond issue selling for 95 percent of par that pays an annual coupon of 8.20 percent.

What would be Oberons before-tax component cost of debt?

With a indepth explnation and solution without excel. Thanks!

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