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What component cost of debt should be used

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Question - To help finance a major expansion, ABC Inc. sold a non-callable 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 ABC's tax rate is 40%, what component cost of debt should be used in the WACC calculation?

Reference no: EM131584660

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