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The carter company has a seven-year bond outstanding with a 6 percent coupon. Interest payments are paid semi-annually. The face amount of the bond is

The carter company has a seven-year bond outstanding with a 6 percent coupon. Interest payments are paid semi-annually. The face amount of the bond is $1000. This bond is currently selling for 101 percent of its face value. What is the companys pre-tax cost of debt? Show work?

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