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To help finance a major expansion, Delano Development Company sold a noncallable bond several years ago that now has 17 years to maturity. This bond

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To help finance a major expansion, Delano Development Company sold a noncallable bond several years ago that now has 17 years to maturity. This bond has a 5.00% annual coupon, paid semiannually, it sells at a price of $1,109, and it has a par value of $1,000. If Delano's tax rate is 36%, what component cost of debt should be used in the WACC calculation? a. 2.63% b. 2.95% c. 3.90% d. 4.61%

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