Question
Calculate the cost of debt using following semi-annual bond information. A three year bond has a 7 percent coupon rate and a $1000 face value.
Calculate the cost of debt using following semi-annual bond information. A three year bond has a 7 percent coupon rate and a $1000 face value. If the market value of the bond is $856, calculate annual cost of debt assuming that the bond makes semi-annual coupon payments.
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley Eakins
6th Edition
0321374215, 9780321374219
