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Oberon, Incorporated has a $25 million (face value) 12-year bond issue selling for 98 percent of par that pays an annual coupon of 8.05 percent.

Oberon, Incorporated has a $25 million (face value) 12-year bond issue selling for 98 percent of par that pays an annual coupon of 8.05 percent. What would be Oberons before-tax component cost of debt? Note: Round your answer to 2 decimal places.

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