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XYZ has issued a 5 year bond with a coupon rate of 11% and face value of $1,000. The price received by XYZ was $1,200.

XYZ has issued a 5 year bond with a coupon rate of 11% and face value of $1,000. The price received by XYZ was $1,200. What is XYZs pre-tax cost of debt?

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