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In December 2006, LoloLimon issued $100 million in bonds.These bonds originally had a 25 year maturity, a 8.5% coupon rate, and semi-annual interest payments on
In December 2006, LoloLimon issued $100 million in bonds.These bonds originally had a 25 year maturity, a 8.5% coupon rate, and semi-annual interest payments on a $1,000 Par value.When they originated, the bonds sold at par.Since origination, the required rate of return on DoubleDown bonds has hovered between a low of 7.25% to a high of 12.5% and currently sell at $45 below par value.What is the current cost of debt (rd) for LoloLimon?
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