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High Yield Inc. sold a noncallable bond 10 years ago that now has 5 years to maturity. This bond has a 8.50% annual coupon, paid
High Yield Inc. sold a noncallable bond 10 years ago that now has 5 years to maturity. This bond has a 8.50% annual coupon, paid semi-annually, sells at a price of $1,095, and has a par value of $1,000. If the firm's tax rate is 35%, what is the component (post-tax) cost of debt for use in the WACC calculation? 4.0677% 6.2306% 6.2579% 2.8880% 4.0499%
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