Your company issues 10-year bonds with a face value of 1000, Ask an Expert

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Your company issues 10-year bonds with a face value of $1,000 at a 7% coupon rate. The market wide interest rate for companies with similar default risk is 9%. What is your company’s cost of debt?

Also if you could go step by step in answering this question that would be great. I do not know how or where to start in finding the cost of debt from issuance of a bond.

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Financial Management, Finance

Category:- Financial Management
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