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Electric Company's noncallable bonds were issued several years ago and now have 20 years to maturity. These bonds have a 9.25% annual coupon, are paid

Electric Company's noncallable bonds were issued several years ago and now have 20 years to maturity. These bonds have a 9.25% annual coupon, are paid semiannually, sell for $1,075, 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? Show and discuss your work.

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