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Business, 22.08.2019 18:10 mariahrpoulin9630

Several years ago the jakob company sold a $1,000 par value, noncallable bond that now has 20 years to maturity and a 7.00% annual coupon that is paid semiannually. the bond currently sells for $925, and the company’s tax rate is 40%. what is the component cost of debt for use in the wacc calculation?
a. 4.28%
b. 4.46%
c. 4.65%
d. 4.83%
e. 5.03%

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Several years ago the jakob company sold a $1,000 par value, noncallable bond that now has 20 years...
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