Question
1) Your firm wishes to issue a 20 year bond, annual coupon of 6%, and the price has been determined to be RM880. The floatation
1) Your firm wishes to issue a 20 year bond, annual coupon of 6%, and the price has been determined to be RM880. The floatation cost of the issuance is 2% of the selling price. The tax rate is 24%. The net selling price is RM________.
2)Your firm wishes to issue a 20 year bond, annual coupon of 6%, and the price has been determined to be RM880. The floatation cost of the issuance is 2% of the selling price. The tax rate is 24%. Annual YTM is ________%
3)Your firm wishes to issue a 20 year bond, annual coupon of 6%, and the price has been determined to be RM880. The floatation cost of the issuance is 2% of the selling price. The tax rate is 24%. After tax cost of debt is ______%.
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Real Estate Finance Theory And Practice
Authors: Terrence M. Clauretie, G. Stacy Sirmans
4th Edition
032414377X, 978-0324143775
