Question
A bond that has a $1,000 par value (face value) and a contract or coupon interest rate of 11 percent. A new issue would have
A bond that has a $1,000 par value (face value) and a contract or coupon interest rate of 11 percent. A new issue would have a flotation cost of 5percent of the $1,125 market value. The bonds mature in 10 years. The firms average tax rate is 30 percent and its marginal tax rate is 34 percent. Compute the cost for the following:
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Forecasting Methods And Applications
Authors: Spyros G. Makridakis, Steven C. Wheelwright, Rob J Hyndman
3rd Edition
0471532339, 9780471532330
