Question: Q 5 . Answer both the questions: a ) An Rs 1 0 0 0 debenture with coupon of 8 % was sold at a

Q5. Answer both the questions:
a) An Rs 1000 debenture with coupon of 8% was sold at a premium of 10% and it will be redeemed after 7 years. With the tax rate of 35%, how much the investor of this instrument can expect as the return on investment?
b) With the floatation cost of 2%, a debenture with 1- years redeemable at par with 9% coupon was sold at a discount of 5%. Compute the cost of debt with tax rate as 30%.
Q5. Answer both the questions: a) An Rs 1000 debenture with

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