Cost of debt for purposes of calculating the wacc

Reference no: EM13820833

Company A's 10 percent coupon rate, quarterly payment, $1,000 par value bond, which matures in 10 years, currently sells at a price of $980. The company's tax rate is 38 percent. Based on the nominal interest rate, what is the firm's component cost of debt for purposes of calculating the WACC? Show your calculations.

Reference no: EM13820833

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