Franklin Inc. has a $100 million (face value) 18-year bond i…
Franklin Inc. has a $100 million (face value) 18-year bond issue selling for 105 percent of par that pays a coupon of 7%. What would Franklin’s before-tax component cost of debt? Assume the par value of each bond is $1,000 and semiannual compounding. Round your final answer to two decimal places.
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