What is the component cost of debt

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A noncallable 30 year bond, 10 years ago with a coupon rate of 8%. The bond pays semi-annual interest and it was originally sold at a par value of $1000 and now sells at $1125. If the firm’s tax rate is 40% what is the component cost of debt t used for the WACC calculation.

Reference no: EM131931189

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