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Issue bonds with the following information: Face Value $1,000 Issue price: $995 (per $1,000 face value) Flotation Costs: $10 (per $1,000 face value) Interest: Coupon
Issue bonds with the following information:
- Face Value $1,000
- Issue price: $995 (per $1,000 face value)
- Flotation Costs: $10 (per $1,000 face value)
- Interest: Coupon Rate of 5% paid annually
- Term: 20 years
Calculate the before tax cost of financing with the bonds.
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The Handbook Of Loan Syndications And Trading
Authors: Marsh, Lee Shaiman, Bridget Marsh
2nd Edition
1264258526, 978-1264258529
