corporate finance

To help finance a major expansion, Castro Chemical Company sold a noncallable bond several years ago that nowhas 20 years to maturity. This bond has a 7.25% annual coupon, paid semiannually, selis at a price of $875.00, and has a par value of $1,000. If the firm's taxrate is 40%, what is the component cost of debt for use in the WACC calculation? To help finance a major expansion, Castro Chemical Company sold a noncallable bond several years ago that nowhas 20 years to maturity. This bond has a 7.25% annual coupon, paid semiannually, selis at a price of $875.00, and has a par value of $1,000. If the firm's taxrate is 40%, what is the component cost of debt for use in the WACC calculation