The Lincoln Company sold a $1,000 par value, noncallable bond several years ago that now has 20 years to maturity and a

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answerhappygod
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The Lincoln Company sold a $1,000 par value, noncallable bond several years ago that now has 20 years to maturity and a

Post by answerhappygod »

The Lincoln Company sold a $1,000 par value, noncallable bond
several years ago that now has 20 years to maturity and a 7.00%
annual coupon that is paid semiannually. The bond currently sells
for $925 and the company's tax rate is 25%. What is the component
cost of debt for use in the WACC calculation?
If the answer is 3% enter 3.00
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