Question
Your firm has just issued a 20-year $1,000.00 par value, 10% annual coupon bond for a net price of $984.00. Floatation costs are $15 per
Your firm has just issued a 20-year $1,000.00 par value, 10% annual coupon bond for a net price of $984.00. Floatation costs are $15 per bond sold. Tax rate is 30%. What is the after-tax cost of debt?
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The Handbook Of Credit Portfolio Management
Authors: Greg Gregoriou, Christian Hoppe
1st Edition
0071598340, 978-0071598347
