Suppose a bond trades for $1013, paying a coupon rate of 4%, and has 5.5 years to maturity. If the tax rate is 39%, what is the cost of long-term debt for this company? Answer: XYZ company has bonds outstanding with 7.5 years to maturity, paying semiannual coupons of 1.52%.The bonds have a $1000 face and trade for $1044. The firm's marginal tax rate is 35%.XYZ also has bank debt which pays 4.64% interest (annual-annual).If XYZ issued new preferred shares they would pay a dividend of $6.0112 and trade for $108.XYZ's common shares pay a dividend annually of $3.53 which is expected to grow at 2% per year. These shares trade for $45. The total dollar value in millions of these securities is $1053 of bonds, $833 of bank debt, $496 of preferred shares, and $1980 of equity.What is the WACC for XYZ company, assuming they are at their capital structure targets