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Suppose your project is worth $140 with a probability of 60.0% and $84 with a probability of 40.0%. The appropriate cost of capital is 0.1
Suppose your project is worth $140 with a probability of 60.0% and $84 with a probability of 40.0%. The appropriate cost of capital is 0.1 for the overall project. If you want to raise $92.4 today and promise to bond investors a rate of return of 0.07, what's the expected rate of return of this bond?
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Financial Accounting and Reporting a Global Perspective
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
4th edition
978-1408066621, 1408066629, 1408076861, 978-1408076866
