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Kathy Company's noncallable bonds were issued several years ago and now have 10 years to maturity. These bonds have a 9.25% annual coupon, paid semiannually,

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Kathy Company's noncallable bonds were issued several years ago and now have 10 years to maturity. These bonds have a 9.25% annual coupon, paid semiannually, sells at a price of $1,075, and has a par value of $1,000. If the firm's tax rate is 40%, what is the component cost of debt for use in the WACC calculation? 8.18% 04.13% 4.88% 7.58%

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