Question
Suppose a company currently has some bonds outstanding in the market The bonds have 10 years until maturity, they pay a coupon rate of 6%
Suppose a company currently has some bonds outstanding in the market The bonds have 10 years until maturity, they pay a coupon rate of 6% on a semi-annual basis. If the company's bonds are selling now for $965, what is the YTM? If the company's tax rate is 40%, what is the cost of debt?
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The Analysis And Use Of Financial Statements
Authors: Gerald I. White, Ashwinpaul C. Sondhi, Haim D. Fried
3rd Edition
0471375942, 978-0471375944
