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Wheelhouse Inc. is calculating its cost of debt. The firm has a monthly bond issue outstanding with 22 years to maturity and a coupon rate

Wheelhouse Inc. is calculating its cost of debt. The firm has a monthly bond issue outstanding with 22 years to maturity and a coupon rate of 8.75%. The par value of the bond is $1,000, and the current price is $1,265.78. Wheelhouse Inc. has a tax rate of 30%. What is the before tax cost of debt for Wheelhouse Inc?

Group of answer choices

6.48%

5.06%

6.91%

6.45%

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