Question
A bond of $ 1,000 dollars par value, with a market price of $ 970, a coupon rate of 10% and float costs of 5%
A bond of $ 1,000 dollars par value, with a market price of $ 970, a coupon rate of 10% and float costs of 5% of the current market value. The bond matures (mature) in 10 years with a 33% marginal tax rate. What is the cost of the bond for the company?
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Sport Finance
Authors: Gil Fried, Steven Shapiro, Timothy D. Deschriver
2nd Edition
0736067701, 978-0736067706
