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We just sold a 20-year, 12% bond 10 years ago at par (1,000). It is currently priced at 89 percent of par. Assuming semi-annual coupon
We just sold a 20-year, 12% bond 10 years ago at par (1,000). It is currently priced at 89 percent of par. Assuming semi-annual coupon payment. What is our cost of debt? - Financial Calculator: N=20; PV= -890; PMT=1000*12%/2=60; FV=1000 - CPT: 1/4 =7.04 YTM=7.04 x 2 = 14.08%
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
9th Edition
9781259722660
