Question: 1 billion in outstanding debt(face value); Current quote = 110; Coupon rate = 9%, semiannual coupons; 15 years to maturity What is the cost of

1 billion in outstanding debt(face value); Current quote = 110; Coupon rate = 9%, semiannual coupons; 15 years to maturity

What is the cost of debt?

(The answer is 7.854%, Please provide the step by step solution to the answer thanks)

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