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Debt The firm can raise an unlimited amount of debt by selling $1,000-parvalue, 8% coupon interest rate, 20-year bonds on which annual interest payments will
Debt The firm can raise an unlimited amount of debt by selling $1,000-parvalue, 8% coupon interest rate, 20-year bonds on which annual interest payments will be made. To sell the issue, an average discount of $30 per bond would have to be given. The firm also must pay flotation costs of $30 per bond. Calculate Cost of debt? Select one: a. 5.55% O b. 10.55% c. 8.55% O d. 9.55% Debt The firm can raise an unlimited amount of debt by selling $1,000-parvalue, 8% coupon interest rate, 20-year bonds on which annual interest payments will be made. To sell the issue, an average discount of $30 per bond would have to be given. The firm also must pay flotation costs of $30 per bond. Calculate Cost of debt? Select one: a. 5.55% O b. 10.55% c. 8.55% O d. 9.55%
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