Question: Duke company issues a $1,000 par value , noncallable bond that has 30 years to maturity and a 6.00% annual coupon that is paid semiannually.

Duke company issues a $1,000 par value , noncallable bond that has 30 years to maturity and a 6.00% annual coupon that is paid semiannually. The bond is selling for $925, and the company tax rate is 35%. What is the components cost of debt for use in the WACC calculation ?

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