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2. The long-term debt of Topstone Industries is currently selling for 104.50% of its face value. The issue matures in 10 years and pays an
2. The long-term debt of Topstone Industries is currently selling for 104.50% of its face value. The issue matures in 10 years and pays an annual coupon of 8%. What is the cost of debt? 1000 X 104.5% = 1 104 FRON anrival coupon = 1.000 x 390 80 A) 6.75% B) 7.35% C) 7.84% D) 8.60% E) 9.45% yrild to riiturity = annual coupon + ( fare value Pu
i know the answer, but would like a step by step without excel. i cannot use excel on the exam and thats how i was taught.
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