Determine the cost of a bond loan for the following situations: a) bonds to be issued at face value; issuing costs: 2%; b) bonds to be issued at face value; issuing costs: 2% + e 30,000 Assume the corporate tax rate is 25%, the interest rate is 8%, the face value is e5, and the maturity of the loan is 5 years. Amount of bonds to be issued: 200,000.

Answer is 6.4%