Question
What will be the YTM on a debt that has par value of $1,000, a coupon interest rate of 6%, time to maturity of 7
What will be the YTM on a debt that has par value of $1,000, a coupon interest rate of 6%, time to maturity of 7 years and is currently trading at $900? What will be the cost of debt if the tax rate is 25%?
A. Kd (6.32%), KdAT (4.42%)
B. Kd (5.56%), KdAT (4.42%)
C. Kd (6.32%), KdAT (4.19%)
D. Kd (6.32%), KdAT (3.32%)
E. No Answer
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Handbook Of Research In Education Finance And Policy
Authors: Helen F. Ladd, Margaret E. Goertz
2nd Edition
0415838010, 978-0415838016
