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Suppose that a firm has 1 5 year bonds with a face value of $ 1 0 0 0 , paying semi annual coupons at

Suppose that a firm has 15 year bonds with a face value of $1000, paying semi annual coupons at a rate of 7% per year, trading at a premium of 15% above face or par value. What is the cost of debt for the firm?

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