What is n component cost of debt

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N ltd's long term debt currently consists of a single issue with a face value of $25 million and a remaining term to maturity of eight years. The issue carries a coupon rate of 6.9% but is currently priced with a yield to maturity of 5.8%. If flotation costs on new debt are 7% before tax, what is N's component cost of debt if its tax rate is 31%?

Reference no: EM132154584

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