Finance Assignment | Professional Writing
Hey I was wondering how to solve this particular problem:
The company has single issued bonds. $1000 is the face value, 4.5% is the coupon rate and they are paid semi annually, 5y is the time to maturity, plus the current market price is $985.04.
Also Beta = 1.3. The risk free rate listed is 1.45% . Additonally, the market premium is 7.2%. 35% is corporate tax rate. How do I get the company’s cost of debt?
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