The outstanding debt of Berstin Corp. has eight years to$$ maturity, a current yield of $7\%,$ and a price of $ $80.$ What is the pretax cost of debt if the tax rate is $40\%.$

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Part $1$

A$.$

$9\%$

B$.$

$5\mathrm{.}4\%$

C$.$

$6\mathrm{.}3\%$

D$.$

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