Question
Suppose a company has currently some bonds outstanding in the market. The bonds have 10 years of maturity, they pay a coupon rate of 6%
Suppose a company has currently some bonds outstanding in the market. The bonds have 10 years of maturity, they pay a coupon rate of 6% on semi-annual basis. If the companys bonds are selling now for $965, what is the YTM? If the companys tax rate is 40%, what is its cost of debt?
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Corporate Financial Management
Authors: Glen Arnold, James Pickford
2nd Edition
0582821762, 978-0582821767
