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Component cost of debt for use in the wacc calculation

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Reference no: EM132816220

Son-Yaz Company sold a noncallable bond several years ago that now has 10 years to maturity. This bond has a 8% annual coupon, paid semiannually, sells at a price of $1,080 and has a par value of $1,000. If the firm's tax rate is 30%, what is the component cost of debt for use in the WACC calculation?

Reference no: EM132816220

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