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Shell Inc has 70,000 bonds outstanding. Each bond has a face value of 1000, a coupon rate of 4.5%, 11 years until the bond matures,
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Shell Inc has 70,000 bonds outstanding. Each bond has a face value of 1000, a coupon rate of 4.5%, 11 years until the bond matures, and a YTM of 6.5%. Additionally, you know that Shell Inc has bank debt with an interest rate of 5%. When calculating WACC, what is cost of debt for Shell Inc?
4.5%
5%
6.5%
11%
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