A $10\%$ debenture has a nominal value of K$1,000$ quoted at K$925.$ The redeem value is K$1,150$

in five years$$ time and taxes at $30\%$ are payable at the end of the year. Furthermore, interest

and redemption payments are payable at the end of the year.

Required

Compute the cost of the debenture. $(25$ Marks$)$