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What is component cost of debt for use in wacc calculation

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Question: To help finance a major expansion, Castro Chemical Company sold a noncallable bond several years ago that now has 20 years to maturity. This bond has a 9.25% annual coupon, paid semiannually, quoted at 107.500, and has a par value of $1,000. What is the component cost of debt (before tax) for use in the WACC calculation?

Reference no: EM132757730

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