Tara Baer
Dec 24, 2012, 10:04 AM
A bond that has $1000 par value and contract interest rate of 11.2%. Teh bonds have current market value of $1125 & will mature in 10 years. The firms marginal tax rate is 34%.
What is the cost of capital from this bond debt: %
What is the cost of capital from this bond debt: %