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The Kenny Electric Company sold a $1,000 par value, noncallable bond several years ago that now has 20 years to maturity and a 7.00% annual

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The Kenny Electric Company sold a $1,000 par value, noncallable bond several years ago that now has 20 years to maturity and a 7.00% annual coupon that is paid semiannually. The bond currently sells for $925 and the company's tax rate is 30%. What is the component cost of debt for use in the WACC calculation? a. 4.28% b. 5.08% C. 5.42% d. 7.74% e. 4.46%

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