Component cost of debt for use in the WACC calculation

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Weir Inc. has a bond in its capital structure that has 20 years to maturity left. The bond has a 9.15% coupon paid annually, sells at a price of $1,000 and has a par value of $1,000. If the firm's tax rate is 38%, what is the component cost of debt for use in the WACC calculation?

 

Reference no: EM131498360

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