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Hamilton Company's 8 percent coupon rate, quarterly payment, $1.000 par value bond, which matures in 20 years, currently sells at a price of $686.86. The

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Hamilton Company's 8 percent coupon rate, quarterly payment, $1.000 par value bond, which matures in 20 years, currently sells at a price of $686.86. The company's tax rate is 40 percent. Based on the nominal interest rate, not the EAR, what is the firm'ss component cost of debt for purposes of calculating the WACC? 3.05% 732% 7.36% 12.20% 12.26% Previous Next

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