To help finance a major expansion,Delano Development Company sold a noncallable bond several years ago that now has 15 years to maturity.This bond has a 10.25% annual coupon,paid semiannually,it sells at a price of $1,025,and it has a par value of $1,000.If Delano's tax rate is 40%,what component cost of debt should be used in the WACC calculation?

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The Answer of To help finance a major expansion,Delano Development Company sold a noncallable bond several years ago that now has 15 years to maturity.This bond has a 10.25% annual coupon,paid semiannually,it sells at a price of $1,025,and it has a par value of $1,000.If Delano's tax rate is 40%,what component cost of debt should be used in the WACC calculation?

To Help Finance a Major Expansion,Delano Development Company Sold a Noncallable