Finance

posted by .

im trying to calculate cost of debt. where did they get the 50 value from? P0 = \$1,080 = \$50(PVIFA,R%,46) + \$1,000(PVIF,R%,46)

30 year bond, 10% semi annual. 7 years ago it was issued. current selling is 108% face value.

Similar Questions

1. Corporate Finance

Calculating Cost of Debt. Peyton's Colt Farm issued a 30-year, 7% semiannual bond 7 years ago. The bond currently sells for 94% of its face value. The company's tax rate is 35%. What is the pretax cost of debt?
2. Finance

Seven years ago a semi-annual coupon bond with a 10% coupon rate, \$1,000 face value and 15 years to maturity was issued by Corn Inc.. Teddy bought this bond two years ago when the market interest rate was 12%. And now the market interest …
3. finance

Peyton’s Colt Farm issued a 30-year, 9.6 percent semiannual bond 6 years ago. The bond currently sells for 87.5 percent of its face value. The company’s tax rate is 38 percent. What is the pretax cost of debt?
4. finance

Peyton’s Colt Farm issued a 30-year, 7.2 percent semiannual bond 6 years ago. The bond currently sells for 87.5 percent of its face value. The company’s tax rate is 38 percent. The book value of the debt issue is \$103 million. …
5. cost of debt

Peyton’s Colt Farm issued a 30-year, 7 percent semiannual bond 7 years ago. The bond currently sells for 94 percent of its face value. The company’s tax rate is 35 percent. What is the pre tax cost of debt?
6. Finance

Jiminy's Cricket Farm issued a 30-year, 7.2 percent semiannual bond 6 years ago. The bond currently sells for 87.5 percent of its face value. The book value of this debt issue is \$103 million. In addition, the company has a second …
7. Finance

Homework Help: Finance Posted by Sally on Monday, November 23, 2015 at 8:02pm. The answer given by Finance - Anonymous , Monday, November 23, 2015 at 8:12pm Add the tax to the "before tax" to get the answer was not helpful. I am hoping …
8. managerial finance

Completed all answers except the last one and I am stuck. Can someone please show me how to solve?
9. finance

Jiminy's Cricket Farm issued a 30-year, 7.2 percent semiannual bond 9 years ago. The bond currently sells for 85.5 percent of its face value. The book value of this debt issue is \$107 million. In addition, the company has a second …
10. finance

Usha Manufacturing Co. has a bond of \$1000 par value outstanding. It pays interest annually and carries an annual coupon rate of 8%. Bonds are issued 2 years ago & due in 10 years. If the market rate of return on bonds is 7%. Required: …

More Similar Questions

Post a New Question