What is component cost of debt for use in wacc calculation

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Problem 1: Duke Company issues a $1,000 par value, noncallable bond that has 30 years to maturity and a 6.00% annual coupon that is paid semiannually. The bond is selling for $925, and the company's tax rate is 35%. What is the component cost of debt for use in WACC calculation?

Reference no: EM132809307

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