Consider the after-tax cash flows below from a project that is being considered by Despondus Corportation. Since the project is an extension of the firm's current business, it carries the same risk as the overall firm.

YEAR	0	1	2	3	4	5
CASH FLOWS	-251,000	94,000	65,000	112,000	94,000	104,000

Despondus Corporation's common stock is currently priced at $44.62, and there are 684,000,000 shares outstanding. A dividend of $3.73 per share was just paid and dividends are expected to grow at a constant rate of 5.87% per year. The company has 7,300,000 bonds outstanding that mature in 10 years and are currently prices at 1,015 per bond. The coupon rate is 14.48%, and the bonds make semiannual interest payments. The company's tax rate is 34%.

WHAT IS DESPONDUS COPORATION'S AFTER-TAX COST OF DEBT?

Correct answer:

N=20

PV= -1015

PMT = 72.4

FV= 1000

CPT I = 7.097338 X 2 = 14.194675%

14.194675% X (1-.34) = 9.37%

MY QUESTION IS HOW DID THEY GET 72.4 FOR THE PMT? I DONT UNDERSTAND WHERE THAT NUMBER IS COMING FROM