In December 2002, DoubleDown, Inc. issued $100 million in bonds.  These bonds originally had a 20 year maturity, a 9.5% coupon rate, and semi-annual interest payments on a $1,000 Par value.  When they originated, the bonds sold at par.  Since origination, the required rate of return on DoubleDown bonds has hovered between a low of 6.75% to a high of 11.5% and currently sell at par value.  

What is the current cost of debt (rd)for DoubleDown? 

Answer rating: 100% (QA)

Current Cost of Debt rd for DoubleDown with StepbyStep Calculations 1 Bond Parameters Face value FV 1000 Coupon rate c 95 semiannual 475 per period Ma... View the full answer