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Calculting the component cost of debt

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A company sold a bond with 15 years to maturity. This bond has an 10% annual coupon, paid semiannually, it sells at a price of $1,080, and it has a par value of $1,000. If the corporate tax rate is 21%, what component cost of debt should be used in the WACC calculation?

Reference no: EM132654655

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