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Company sold a noncallable bond several years ago that now has 13 years to maturity. This bond has a 12% annual coupon, paid semiannually, sells

Company sold a noncallable bond several years ago that now has 13 years to maturity. This bond has a 12% annual coupon, paid semiannually, sells at a price of $1,090 and has a par value of $1,000. If the firm's tax rate is 30%, what is the component cost of debt for use in the WACC calculation?

5.35%

7.49%

10.70%

8.19%

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