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Several years ago the Wackobe Company issued a $1,000 par value, non-callable bond that now has 20 years to maturity adn a 7% annual coupon

Several years ago the Wackobe Company issued a $1,000 par value, non-callable bond that now has 20 years to maturity adn a 7% annual coupon that is paid semiannually. The bond currently sells for $955, and teh 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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