Question
The firm can sell for $980 a 10-year, $1000 par bond paying annual interest at a 10% coupon rate. A flotation cost of 3% of
The firm can sell for $980 a 10-year, $1000 par bond paying annual interest at a 10% coupon rate. A flotation cost of 3% of the par value is required in addition to the discount of $20 per bond.
What is the cost of this debt?
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Finance For Development
Authors: Barbara Stallings
1st Edition
0815780850, 978-0815780854
