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10. To help finance a major expansion, Manor Pharmaceuticals sold a noncallable bond several years ago that now has 20 years to maturity. This bond

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10. To help finance a major expansion, Manor Pharmaceuticals sold a noncallable bond several years ago that now has 20 years to maturity. This bond has a 8.5% annual coupon, paid semiannually, sells at a price of $1,025, and has a par value of $1,000. If the firm's tax rate is 40%, what is the component cost of debt for use in the WACC calculation? Do not round your intermediate calculations

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