Question
RST Corp. will be issuing 20-year bonds with face value of P 3,000,000 par value of the bond is P 1,000. Coupon rate is 3%.
RST Corp. will be issuing 20-year bonds with face value of P 3,000,000 par value of the bond is P 1,000. Coupon rate is 3%. Expected selling price is 90% of par value.Flotation cost per bond is P25. Corporate tax rate is 32%. Interest payment is made annually. Compute for the . a) Net proceeds of the bond sale b) before taxcost of bonds c)After tax cost ofnew bonds
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Financial Markets And Institutions
Authors: Jeff Madura
9th Edition
1439038848, 978-1439038840
