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Question 25 1 pts Your firm has a bond with 12 years to maturity, a coupon rate of 4.5% making payments semi-annually, a face
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Answer #1

Coupon = (0.045 * 1000) / 2 = 22.5

Number of periods = 12 * 2 = 24

Cost of debt = 4.98%

Keys to use in a financial calculator:

2nd P/Y 2

FV 1000

PV -957

PMT 22.5

N 24

CPT I/Y

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