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You know that the after-tax cost of debt capital for Bubbles Champagne is 6.20 percent. Assume that the firm has only one issue of five-year

You know that the after-tax cost of debt capital for Bubbles Champagne is 6.20 percent. Assume that the firm has only one issue of five-year bonds outstanding. The bonds make semiannual coupon payments and the marginal tax rate is 30 percent.

Calculate Pre-tax cost of debt capital.__________________

Current price of the bonds._________________

Please show your work espically if you use excel.

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