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WC Inc. has a $10 million (face value), 10-year bond issue selling for 97 percent of par that pays an annual coupon of 6 percent.

WC Inc. has a $10 million (face value), 10-year bond issue selling for 97 percent of par that pays an annual coupon of 6 percent. What would be WC's before-tax component cost of debt? Please show all work and formulas.

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