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Determining the component cost of debt

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To help finance a major expansion, a company sold a noncallable bond several years ago that now has 15 years to maturity. This bond has a 10.25% annual coupon, paid semiannually, it sells at a price of $1,025, and it has a par value of $1,000. If the company's tax rate is 21%, what component cost of debt should be used in the WACC calculator?

Reference no: EM132794393

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