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velvetmckinley
Jan 8, 2011, 12:23 PM
How do you solve for the pre tax Cost of Debt with the followning info:

Settlement 12/01/00
Maturity 12/01/30
Price (% of par) 7
Coupon rate 108%
Payments per year 2
Tax rate 35%

kiransoni
Dec 23, 2011, 03:16 AM
answer.1 is np = face value - issue expenses ( at par )
np = face value - issue expenses - discount ( at discount ) and
np = face value - issue expenses + premium ( at premimum )