Question
A. ABC plans to finance the capital project next year by issuing $50 million of 11% semi-annual coupon rate bonds, with each bond having a
A. ABC plans to finance the capital project next year by issuing $50 million of 11% semi-annual coupon rate bonds, with each bond having a maturity (par) value of $1,000 and 15-year maturity. After investment bank collects their underwriting fees. ABC will receive $960 for each bond. What is the cost of debt for ABC?
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Peggy L. Hedges, Philip Chang, Keith C. Brown, Hedges Reilly Brown
1st Canadian Edition
0176500693, 978-0176500696
