Quote (WeEzY23 @ 27 Jan 2010 21:11)
Quote (Beer_guy @ Jan 27 2010 06:10pm)
i was told ur good in finance
can u help me with a question??
wat?
destination20 told me to pm u for help
sry if he was lying lol, but i need help with this quesiton:
PART A
say:
30 year, 10% semi annual bond issued 7 years ago. Bond currently sells for 108% its face value, Tax rate is 35%
how do i find the cost of debt of this?
PART B
Also say:
The Book value of debt is $20million for previous bond. And the company also has a second debt issue on the market, a zero coupon bond with 7 years left till maturity; its book value is $80million, and the bond sells for 58% of par
how do i find the total book value and the total market value?? and what is the new cost of debt?
i just dont know how to find the YTM of the bond that was issued 7 years ago o_O any help would be appreciate
il donate if it helps me finish the question