Question: A company issued 7,000, 7% debentures of Rs. 100 each par on 1.4.2017 to be matured on 31.3.2024. The debentures will be redeemed at a

A company issued 7,000, 7% debentures of Rs. 100 each par on 1.4.2017 to be matured on 31.3.2024. The debentures will be redeemed at a premium of 10% on maturity. COMPUTE the cost of debentures assuming 25% as tax rate.

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