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Oberon, Incorporated has a $30 million (face value) 10-year bond issue selling for 95 percent of par that pays an annual coupon of 8.45 percent.

Oberon, Incorporated has a $30 million (face value) 10-year bond issue selling for 95 percent of par that pays an annual coupon of 8.45 percent. What would be Oberon's before-tax component cost of debt? Note: Round your answer to 2 decimal places

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