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To help finance a major expansion, Castro Chemical Company sold a noncallable bond several years...

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To help finance a major expansion, Castro Chemical Company sold a noncallable bond several years ago that now has 20 years to maturity. This bond has a 10.50% annual coupon, paid semiannually, sells at a price of $675, and has a par value of $1,000. If the firm's tax rate is 25%, what is the component cost of debt for use in the WACC calculation? Do not round your intermediate calculations. O a. 5.83% O b. 11.959 O c. 13.12% O d. 15.939 O e. 7.97%

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