Your firm wishes to issue a 20 year bond, annual coupon of 6%, and the price has been determined to be RM880. The floatation cost of the issuance is 2% of the selling price. The tax rate is 24%.

A 20 year old callable bond can be called back at year 15. At the time of issuance, the bond was sold for RM875, and the callable value is RM1,100. The annual coupon rate is 6%.