1. What is the market interest rate on XYZ's debt and its component cost of debt? I know n=30, PV=1153.72, PV=1000, however I am not sure where to go from here within excel.
Coupon rate = 12%
Coupons per year = 2
Years to maturity = 15
Price = $1,153.72
Face value = $1,000
Tax rate = 40%
I need to find the following
What is the Market Interest Rate =
What is the Cost of Debt =