Milva Corporation plans to issue a $1,000 par value, 20-year noncallable bond with a 7.00% annual coupon, paid semiannually. The company's marginal tax rate is 42.00%, but Congress is considering a change in the corporate tax rate to 35%. By how much would the component cost of debt used to calculate the WACC change if the new tax rate was adopted?
0.46%
0.59%
0.49%
0.44%
0.53%