Rehan Gates has in issue 10% debentures of a nominal value of $100. The market price is $90 ex interest.

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answerhappygod
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Rehan Gates has in issue 10% debentures of a nominal value of $100. The market price is $90 ex interest.

Post by answerhappygod »

Ignoring taxation, calculate the cost of this capital if the debenture is redeemable at par after 10 years.
A. 10.20%
B. 14.00%
C. 11.10%
D. 11.76%
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