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Find the weighted average cost of debt for a company with the following two bonds outstanding:

Bond A Bond B

Face Value 1,000 1,000

Number of bonds outstanding 2,500 6000

Coupon rate 9% 6%

Compounding Annual Semiannual

Years to Maturity 13 6

Current price 104 99

Cost of debt (YTM)—Bond A ___________________

Cost of debt (YTM)—Bond B ___________________

Market Value % of Bond A _________________

Market Value % of Bond B ___________________

Weighted Average cost of debt _____________________

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92746497

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