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-   -   Pretax Cost of Debt Formula (https://www.askmehelpdesk.com/showthread.php?t=541905)

  • Jan 8, 2011, 12:23 PM
    velvetmckinley
    Pretax Cost of Debt Formula
    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%
  • Dec 23, 2011, 03:16 AM
    kiransoni
    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 )


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