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What is the component cost of debt for use in the WACC

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Problem - Several years ago the Jakob Company sold a $1,000 par value, noncallable bond that now has 20 years to maturity and a 6.00% annual coupon that is paid semiannually. The bond currently sells for $925 and the company's tax rate is 35%. What is the component cost of debt for use in the WACC calculation?

Reference no: EM133039213

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