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The market price of a bond is $1236.94, it has 14 years to maturity, a $1000 face value, and pays an annual coupon of $100

The market price of a bond is $1236.94, it has 14 years to maturity, a $1000 face value, and pays an annual coupon of $100 (10%). What is the cost of capital for debt that should be used the WACC computation ?

a. 3.18%

b. 4.26%

c. 5.37%

d. 6.11%

e. 7.25%

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