A companys 6 coupon rate semiannual payment 1000 par value, Ask an Expert

Finance

A company's 6% coupon rate, semiannual payment, $ 1,000 par value bond that matures in 30 years sells at a price of $ 515.16. The company's federal plus state tax rate is 40%. What is the firms component cost of debt for purposes of calculating the WACC?

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