A firm has $500 million of outstanding debt, with a par value of $1,000 and a coupon

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A firm has $500 million of outstanding debt, with a par value of $1,000 and a coupon rate of 10%. The debt is currently trading at $ 950 and has three years remaining. Find the cost of debt?

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Principles of Finance

ISBN: 978-1285429649

6th edition

Authors: Scott Besley, Eugene F. Brigham

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Posted Date: Jun 07, 2023 05:55 AM

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A firm has $500 million of outstanding debt, with a par value of $1,000 and a coupon

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To find the cost of debt we need to calculate the yield to maturity YTM of the debt The yield to mat... View the full answer

Principles of Finance

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