1. A 10 year bond has a coupon payment of 9% with a face value of RM1000. It the price of the bond is RM950 and corpora
Posted: Sun Jul 03, 2022 12:57 pm
1. A 10 year bond has a coupon payment of 9% with a face value of RM1000. It the price of
the bond is RM950 and corporate tax rate is 40%, what is the cost of debt after tax?
Denote cost of debt as Kd or YTM (yield to maturity) Kdbt Kdat T Kdbt = Kdat Cost of debt before tax Cost of debt after tax Tax CP + ((PV-(MP-fc))/n) (PV +(MP-fc))/2 kabl YTM (1-T)
the bond is RM950 and corporate tax rate is 40%, what is the cost of debt after tax?
- 1 A 10 Year Bond Has A Coupon Payment Of 9 With A Face Value Of Rm1000 It The Price Of The Bond Is Rm950 And Corpora 1 (33.21 KiB) Viewed 10 times