Several years ago, a bond is sold at its par value ($i,000). The time to maturity...

Several years ago, a bond is sold at its par value ($i,000). The time to maturity is 20 years. The coupon rate is 7.00%. The coupon payments are made semiannually. The current price of the bond is $1,150, and the company's tax rate is 40%. What is the component cost of debt for use in the WACC calculation? a) 4.16% b) 2.58% c) 2.89% d) 3.44%

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jeff jeffy answered 1 year ago

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