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Suppose we have a bond issue currently outstanding that has 21 years left to maturity. The coupon rate is 10% and coupons are paid semiannually.

Suppose we have a bond issue currently outstanding that has 21 years left to maturity. The coupon rate is 10% and coupons are paid semiannually. The bond is currently selling for R800 per R1000 bond. What is the cost of debt?

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