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Hamilton company’s 8 percent coupon rate, quarterly payment, $1,000 par value bond, which matures in 20 years, currently sells at a price of $686.86. the company’s tax rate is 40 percent. what is the firm’s
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Hamilton company’s 8 percent coupon rate, quarterly payment, $1,000 par value bond, which matures in 20 years, currently sells at a price of $686.86. the company’s tax rate is 40 percent. what is the firm’s component cost of debt for purposes of calculating the wacc?

User Vivek Sethi
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The correct answer is the firm's component cost of debt for purposes of calculating the wacc is  7.32%. 
User ComeGetSome
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