A company has $20 million face value of bonds outstanding that pay a coupon of 10 percent

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A company has $20 million face value of bonds outstanding that pay a coupon of 10 percent annually and have 8 years to maturity. The bonds have a 12 percent yield to maturity. What value should be used for debt in the company's WACC calculation?

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Corporate Finance A Practical Approach

ISBN: 9781118217290

2nd Edition

Authors: Michelle R Clayman, Martin S Fridson, George H Troughton, Matthew Scanlan

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Posted Date: May 09, 2024 07:23 AM

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A company has $20 million face value of bonds outstanding that pay a coupon of 10 percent

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To calculate the value of debt for the companys Weighted Average Cost of Capital WACC calculation we ... View the full answer

Corporate Finance A Practical Approach

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