EXAMPLE ABC ltd issued 12.5% debenture of a face-value of SR 100 each, it is redeemed at the end of 7 years at 5% discount. The flotation cost is 1% and tax rate is 40%. (if the redeemable value is not given, we have to assume SR 100) EXAMPLE ABC ltd issued 12.5% debenture of a face-value of SR 100 each, it is redeemed at the end of 7 years at 5% discount. The flotation cost is 1% and tax rate is 40%. (if the redeemable value is not given, we have to assume SR 100)