few years ago the starbucks sold a $1,000 par value, noncallable bond that now has 20 years to maturity and a 7.00% annual coupon that is paid semiannually. The bond now sells for $1,000, and the companys tax rate is 40%. What is the component cost of debt for use in the WACC calculation?

a.

3.82%

b.

3.61%

c.

4.45%

d.

5.17%

e.

4.20%