Question
What is the formula for Excel to calculate- I am not looking for the answers, I just need the formula.. Cost of debt using the
What is the formula for Excel to calculate- I am not looking for the answers, I just need the formula..
Cost of debt using the approximation formula For each of the following $1,000- par-value bonds, assuming annual interest payment and a 40% tax rate, calculate the after-tax cost to maturity using the approximation formula.
| LIFE/YEARS | UNDERWRITING FEE | DISCOUNT (-) OR PREMIUM (+) | COUPON INTEREST RATE |
| 20 | $25 | -$20 | 9% |
| 16 | $40 | $10 | 10% |
| 15 | $30 | -$15 | 12% |
| 25 | $15 | PAR | 9% |
| 22 | $20 | -$60 | 11% |
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Introductory Course On Financial Mathematics
Authors: M V Tretyakov
1st Edition
1908977388, 978-1908977380
