A company's 6 percent coupon rate, semiannual payment, $1,000 par value bond which matures in 30 years sells at a price of $515.16. The company's federal-plus-state tax rate is 40 percent. What is the firm's component cost of debt for purposes of calculating the WACC? (Hint: Base your answer on the nominal rate).

The first sentence is worded in an unusual fashion. A 6% coupon rate, semiannual payment on a $1,000 bond means that the semiannual payment is $60.00.