Oberon, Inc., has a $20 million (face value) 10-year bond issue selling for 97 percent

Oberon, Inc., has a $20 million (face value) 10-year bond issue selling for 97 percent of par that pays an annual coupon of 8.25 percent.

What would be Oberon’s before-tax component cost of debt? (Round your answer to 2 decimal places.)

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