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ABA inc. just issued a series of 20 year maturity bonds with a par value of...

ABA inc. just issued a series of 20 year maturity bonds with a par value of $1000 and a 4% coupon, paid semiannually. The bond can sell in the open market for $950. Flotation costs on the new bonds are $80. If ABA inc is in the 35% tax backet, what is the pre tax cost of debt on the newly issued bonds?
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