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To help finance a major expansion, Castro Chemical Company sold a noncallable bond several years ago that now has 20 years to maturity. This

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To help finance a major expansion, Castro Chemical Company sold a noncallable bond several years ago that now has 20 years to maturity. This bond has a 10.00% annual coupon, paid semiannually, sells at a price of $750, and has a par value of $1,000. If the firm's tax rate is 25%, what is the component cost of debt for use in the WACC calculation? Do not round your intermediate calculations. O a. 10.26% 0 C b. 6.84% 11.16% d. 13.68% e. 5.29% O

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