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Several years ago, the Jakobe Company issued a $ 1 , 0 0 0 par value, non - callable bond that now has 2 0

Several years ago, the Jakobe Company issued a $1,000 par value, non-callable bond that now has 20 years to maturity and a 7% annual coupon that is paid semiannually. The bond currently sells for $1065, and the company's tax rate is 40%. What is the component after-tax cost of debt for use in the WACC calculation?

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