Question 9 (1 point)

To help finance a major expansion, Delano Development Company sold a noncallable bond several years ago that now has 15 years to maturity. This bond has a 10.25% annual coupon, paid semiannually, it sells at a price of $1,025, and it has a par value of $1,000. If Delanos tax rate is 40%, what component cost of debt should be used in the WACC calculation?

Question 9 options:

	5.96%
	5.11%
	5.37%
	5.66%