Question: Simon Malls ( SPG ) has $ 1 5 6 M in bank debt at a rate of 6 % , $ 4 9 8

Simon Malls (SPG) has $156M in bank debt at a rate of 6%, $498M in outstanding bonds with an average rate of 7%, and $1550 in common shares outstanding at an average return of 18%. What is their pre-tax cost of debt? (answer in a percentage e.g.9.9%)

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