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Several years ago the Jakob Company sold a $1,000 par value, noncallable bond that now has 20 years to maturity and a 6.00% annual coupon

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Several years ago the Jakob Company sold a $1,000 par value, noncallable bond that now has 20 years to maturity and a 6.00% annual coupon that is paid semiannually. The bond currently sells for $825, and the company's tax rate is 25%. What is the component cost of debt for use in the WACC calculation? Do not round your intermediate calculations. a. 6.49% b. 7.73% c. 5.80% d. 3.87% e. 3.72%

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