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The IPL Sports Company has issued 8% coupon bonds. Coupons are paid on a quarter...
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The IPL Sports Company has issued 8% coupon bonds. Coupons are paid on a quarterly basis, the bonds have a R1 000 par value and will mature in 10 years. The bonds are currently selling at a price of R900. The company's tax rate is 28%. What is the firm's component cost of debt for purposes of calculating the weighted average cost of capital (WACC)? Round to two decimal places.
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