Question
I am computing the cost of debt. My company issued a semi annual coupon bond. The coupon rate is 7% with 15 years to maturity
I am computing the cost of debt.
My company issued a semi annual coupon bond. The coupon rate is 7% with 15 years to maturity and a price of 1040.with a face value of 1000. Compute the cost of debt the cost of debt (YTM) for this company. I did the equation (c+(f-p)/n/2) / (f+p) / 2 I got coupon rate of = .07*1000 = 70 / 2 (semi annual) = 35 (35+((1000-1040)/30/(1000+1040)/2 = 35.001 ((I am not sure what I did wrong on this, but I am sure it's not right.
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International Marketing And Export Management
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
8th Edition
1292016922, 978-1292016924
