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Cost of debt using both methods(YTM and the approximationformula) Currently, Warren Industries can sell 15-year, $1,000 par-value bonds paying annual interest at a 9% coupon
Cost of debt using both methods(YTM and the approximationformula)
Currently, Warren Industries can sell 15-year, $1,000 par-value bonds paying annual interest at a 9% coupon rate. As a result of current interest rates, the bonds can be sold for $1070 each before incurring flotation costs of $20per bond. The firm is in the 40% tax bracket.
Solve please (hoe did you get the PMT??
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