Question
A firm raises capital by selling 30,000 worth of debt with flotation costs equal to 3% of its par value. If the debt matures in
A firm raises capital by selling 30,000 worth of debt with flotation costs equal to 3% of its par value. If the debt matures in 5 years and has an annual coupon interest rate of 8%, what is the bonds YTM?
1. The bonds YTM is ? ROUND TO TWO DECIMAL PLACES
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Cases in Finance
Authors: Jim DeMello
3rd edition
1259330476, 1259330478, 9781259352652 , 978-1259330476
