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At present a bond is being traded at 84. When the future cashflows have been discounted at 5%, the NPV value of the bond was
At present a bond is being traded at 84. When the future cashflows have been discounted at 5%, the NPV value of the bond was found to be 87.47. When the future cashflows have been discounted at 10%, the NPV value of the bond was found to be 82.26. What is the Cost of Debt (Kd)? You should use the Internal Rate of Return (IRR).
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