What is the cost of capital from this bond debt


A bond that has a $1000 par value(face value) and a contract or coupon interest rate of 11.2%. The bonds have a current market value of 1,123 and will mature in 10 years. The firms,s marginal tax rate is 34%.

What is the cost of capital from this bond debt?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: What is the cost of capital from this bond debt
Reference No:- TGS0516527

Expected delivery within 24 Hours