A company s 6% coupon rate, semiannual payment, $1,000 par value bond that matures in 30 years sells at a price of $515.16. The company s federal plus state tax is 40%. What is ht firms after tax component cost of debt for purposes of calculating the WACC? Hint base answer on the nominal rate.

A company s 6% coupon rate, semiannual payment, $1,000 par value bond that matures in 30 years sells at a price of $515.16. The company s federal plus state tax is 40%. What is ht firms after tax component cost of debt for purposes of calculating the WACC? Hint base answer on the nominal rate.








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