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Blue Danube Company's noncallable bonds were issued several years ago and now have 20 years to maturity. These bonds have a 9.50% annual coupon, paid

Blue Danube Company's noncallable bonds were issued several years ago and now have 20 years to maturity. These bonds have a 9.50% annual coupon, paid semiannually, sell at a price of $1,150, and have a par value of $1,000. If the firm's tax rate is 21%, what is the component cost of debt for use in the WACC calculation? 6.31% 3.99% 9.50% 7.99% 8.31%

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