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

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To help finance a major expansion, Castro Chemical Company sold a roncallable bond several years ago that now has 20 years to maturity. This bond has a 7.25% annual coupon, paid semiannually, sells at a price of $650, 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. a. 10.36% 1.5.93% 5.06% d. 11 86% 8.90%

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