Question: KatyDid Clothes has a $ 1 6 0 million ( face value ) 3 0 - year bond issue selling for 1 0 3 percent

KatyDid Clothes has a $160 million (face value)30-year bond issue selling for 103 percent of par that carries a coupon rate of 12 percent, paid semiannually.
What would be Katydids before-tax component cost of debt?
Note: Round your answer to 2 decimal places.

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