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A few years ago ValuChain Company sold a $1,000 par value, noncallable bond that now has 15 years to maturity and a 5.00% annual coupon

A few years ago ValuChain Company sold a $1,000 par value, noncallable bond that now has 15 years to maturity and a 5.00% annual coupon that is paid semiannually. The bond currently sells for $920 and the company's tax rate is 40%. What is the component cost of debt for use in the WACC calculation?

A.) 1.74%

B.) 2.32%

C.) 3.48%

D.) 6.96%

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