Search results

  1. S

    Individual or component costs of capital

    Compute the cost of capital for the firm for the following: A) A bond that has $1000 par value ( face value) and a contract or coupon interest rate of 11.4% Interest payments are $57.00 and are paid semiannually. The bonds have a current market value of $1,121 and will mature in 10 years. The...