A bond that has a $1000 par value (face value) and a contract or coupon interest rate of 11.5. The bonds have a current value of $1120 and will mature in ten years. The firm's marginal tax rate is 34%. Using the time value of money, calculate the yield to maturity on a financial calculator.
1 answer
A bond that has a $1000 par value (face value) and a contract or coupon interest rate of 11.5. The bonds have a current value of $1125 and will mature in ten years. The firm's marginal tax rate is 34%. The cost of capital from this bond debt is %. ?