Question
12.Juno has 8 percent bonds outstanding that mature in 19 years. The bonds pay interest semiannually and have a face value of $1,000. Currently, the
12.Juno has 8 percent bonds outstanding that mature in 19 years. The bonds pay interest semiannually and have a face value of $1,000. Currently, the bonds are selling for $989 each. What is Juno's pre-tax cost of debt?
a.8.09 percent
b.8.11 percent
c.8.14 percent
d.8.18 percent
e.8.23 percent
Im putting it in the calculator ....I understand N=38 PV=-989 FV=1000 I can't under stand why am I putting PMT=40 then computing for I/Y....
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Roberts, Hamdi Driss
8th Canadian Edition
01259270114, 9781259270116
