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Question Titans, Inc. has 6.5 percent bonds outstanding that mature in 13 years. The bonds pay interest semiannually and have a face value of $1,000.

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Titans, Inc. has 6.5 percent bonds outstanding that mature in 13 years. The bonds pay interest semiannually and have a face value of $1,000. Currently, the bonds are selling for $996 each. What is the firm's pretax cost of debt?

Pretax cost of debt =

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