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The outstanding debt of Berstin Corp. has five years to maturity, a current yield of 9%, and a price of $80. What is the pretax

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The outstanding debt of Berstin Corp. has five years to maturity, a current yield of 9%, and a price of $80. What is the pretax cost of debt if the tax rate is 40%. Note: The current yield of a bond is its annual coupon divided by its price. A. 10.29% B. 7.72% C. 9% D. 12.87%

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