Hamilton pawn shop has two bond issues outstanding compute, Ask an Expert

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Hamilton Pawn Shop has two bond issues outstanding. Compute the weighted average cost of debt for HPS using the following data:

Bond Issue A Bond Issue B

Face Value 1000 1000

Current Price 97 104

Coupon rate 5% 7%

Payable Annually Semiannually

Years to maturity 14 6

Number of bonds outstanding 4000 2500

What is the YTM on bond A? _________________

What is the YTM on bond B? _________________

What is the market value weight (percentage) for bond A? ____________

What is the market value weight (percentage) for bond B? ____________

What is the weighted average cost of debt? ________________

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92174124

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