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Your firm has a publicly-traded bond issue of $400 million outstanding. These bonds have a 5.25% annual coupon rate, 20 years remaining to maturity, and
Your firm has a publicly-traded bond issue of $400 million outstanding. These bonds have a 5.25% annual coupon rate, 20 years remaining to maturity, and an A- rating. If these bonds are currently selling at par value, what is your estimate of the firms cost of debt?
I understand that if selling at par value, YTM = Coupon Rate, but how would I find the numerical value of this debt?
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