Answered: Calculate the cost of capital of the…

Business

Accounting

Calculate the cost of capital of the bond!

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

PT ABC issues bonds with a term of 5 years, with a value of. nominal amount of Rp. 1,000,000.00 each sheet. The interest offered in the issuance of bonds is 6.25% per annum. The selling price of the bonds is Rp. 935,000.00 each with a tax rate of 15%. Calculate the cost of capital of the bond!

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