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7. The Lincoln Company sold a $1,000 par value, noncallable bond several years ago that now has 20 years to maturity and a 8.00% annual

7. The Lincoln Company sold a $1,000 par value, noncallable bond several years ago that now has 20 years to maturity and a 8.00% annual coupon that is paid semiannually. The bond currently sells for $935 and the company's tax rate is 40%. What is the component cost of debt for use in the WACC calculation? a. 4.28% b. 4.46% c. 4.65% d. 4.83% 'FUFIK mute lit o .40 P4-935

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