Problem $11-14$

OUTPUT

de minimus

Flotation cost per bond

$10\mathrm{.}0\%$

Method of determining cost

IF statement

Allocation Method

Number of coupon payments

Tax shield from amortized flotation costs

After$-$tax coupon payment

Net proceeds after FC

$$999\mathrm{.}90$

Par value

$$1,000\mathrm{.}00$

After$-$tax cost of debt

Constant Yield Method

Number of coupon payments

Coupon payment

Net proceeds after FC

Par value

Before$-$tax cost of debt

After$-$tax cost of debt