A company has a 15-year bond outstanding with a coupon rate of 4.5 percent, a $1,000 par value, and a maturity of 7 years. The bond has a current price of $1,105.50, and pays interest semiannually. What is the company's cost of debt as reflected by the bond?

Answer rating: 100% (QA)

To calculate the companys cost of debt as reflected by the bond we need to use the yield to maturity ... View the full answer