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Years ago, Bustle Company sold a $1,000 par value bond that now has 25 years to maturity and an 8.00% annual coupon that is paid
Years ago, Bustle Company sold a $1,000 par value bond that now has 25 years to maturity and an 8.00% annual coupon that is paid quarterly. The bond currently sells for $1,005, and the company's tax rate is 40%. What is the component cost of debt for use in the WACC calculation? MUST SHOW WORK \begin{tabular}{l} \hline 5.04% \\ \hline 5.02% \\ \hline 4.77% \\ \hline 5.59% \\ \hline 6.29% \end{tabular}
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