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Several years ago a company sold a $1,000 par value, noncallable bond that now has 20 years to maturity and a 6.25% annual coupon. The

Several years ago a company sold a $1,000 par value, noncallable bond that now has 20 years to maturity and a 6.25% annual coupon. The bond currently sells for $875, and the company's tax rate is 40%. What is the component cost of debt for use in the WACC calculation? Do not round your intermediate calculations.

O 4.98%

8,30%

7.00%

4.92%

4.48%

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