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UTT Inc. has 10,000 bonds with a coupon rate of 5 percent and a current price quote of 105; the bonds have 20 years to

UTT Inc. has 10,000 bonds with a coupon rate of 5 percent and a current price quote of 105; the bonds have 20 years to maturity. 20,000 zero coupon bonds with a price quote of 25; 30 years until maturity. Corporate bonds pay semi-annual coupons with face value of $1,000. What is the pre-tax weighted average cost of debt?

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