Rehan Gates has in issue 10% debentures of a nominal value of $100. The market price is $90 ex interest.
Posted: Mon Mar 07, 2022 8:27 am
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%
A. 10.20%
B. 14.00%
C. 11.10%
D. 11.76%