Unformatted text preview: = 10.675% Account Payable to Long term debt 0.2 Solutions: a) NPV= 50 b) NPV = 78.22 c) NPV = 6.41 Example 3. Debt to equity ratio = 0.5 Rs = 20% Rb = yield to maturity of a 5-year bond, annual payments annual coupon rate = 9.00% Price of the bond = 1200 You have to compute the YTM = 10.675% Account Payable to Long term debt 0.2 Solutions: a) NPV= -2.25 b) NPV = 375.90 c) NPV = -7.77...
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- Fall '08
- STAFF
- Finance, Corporate Finance, Debt, long term debt, annual coupon rate
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