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Suppose that a firm issued a 30-year, 8 percent semiannual bond 7 years ago. If the bond currently sells for 91.5 percent of its face

Suppose that a firm issued a 30-year, 8 percent semiannual bond 7 years ago. If the bond currently sells for 91.5 percent of its face value and the companys tax rate is 35 percent, what is the companys pretax cost of debt?

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