Bob’s Roofing’s non-callable bonds were issued several years ago and now have 20 years to maturity....

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Bob’s Roofing’s non-callable bonds were issued several years agoand now have 20 years to maturity. These bonds have a 7.28% annualcoupon, paid semiannually, sells at a price of $1,054, and has apar value of $1,000. If the firm’s tax rate is 35%, what is thecomponent cost of debt (after-tax) for use in the WACCcalculation?

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Bob’s Roofing’s non-callable bonds were issued several years agoand now have 20 years to maturity. These bonds have a 7.28% annualcoupon, paid semiannually, sells at a price of $1,054, and has apar value of $1,000. If the firm’s tax rate is 35%, what is thecomponent cost of debt (after-tax) for use in the WACCcalculation?

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