Question
The bonds of Casino, Inc., trade in the market at a yield of 10.8%, have a 12% coupon rate, and a promised yield of 14.0%.
The bonds of Casino, Inc., trade in the market at a yield of 10.8%, have a 12% coupon rate, and a promised yield of 14.0%. However, investors only expect Casino to pay in full with 65% probability. What cost of debt should be used in Casino's WACC?
| 14.0% 10.8% 12.0% 9.1% | |
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States And The Reemergence Of Global Finance
Authors: Eric Helleiner
1st Edition
0801428599, 978-0801428593
