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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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