Question: A's Electrical has a bond issue outstanding with ten years to maturity. These bonds have a $1,000 face value, a 6 percent coupon, and pay

A's Electrical has a bond issue outstanding with ten years to maturity. These bonds have a $1,000 face value, a 6 percent coupon, and pay interest semi-annually. The bonds are currently quoted at 96 percent of face value. What is A's approximate pre-tax cost of debt?

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