Question: TAB Inc. has a $100 million (face value), 10 year bond issue selling for 95 percent of par that pays an annual coupon of 8.5

TAB Inc. has a $100 million (face value), 10 year bond issue selling for 95 percent of par that pays an annual coupon of 8.5 percent. What would be TAB's before-tax component cost of debt?

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