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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

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 coupon rate of 9.25%, paid semiannually, sells at a price of $875, and has a par value of S1,000. If the firm's tax rate is 25%, what is the component cost of debt (after-tax cost of debt) for use in the WACC calculation? Do not round your intermediate calculations.

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