Question: Bron Co . sold a $ 1 , 0 0 0 par value, noncallable bond that now has 2 0 years to maturity and a

Bron Co. 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 $875, and the companys tax rate is 40%. What is the component cost of debt for use in the WACC calculation?

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