Answer to Question #297189 in Finance for moha

Question #297189

Assume that MKU Enterprise Ltd sells a 500 KES bond that matures in 10 years. The annual interest payments are 45 KES and the net proceeds of the bond are Ksh. 478. Use the correct formula and the above given data to estimate before-tax-cost of bond.

Expert's answer

"r=\\frac{\\frac{500-478}{10}+45}{\\frac{500+478}{2}}=\\frac{47.2}{489}=0.0965" or 9.65%

Learn more about our help with Assignments: Finance

Comments

No comments. Be the first!

Leave a comment

Related Questions

Who Can Help Me with My Assignment

There are three certainties in this world: Death, Taxes and Homework Assignments. No matter where you study, and no matter…
How to Finish Assignments When You Can’t

Crunch time is coming, deadlines need to be met, essays need to be submitted, and tests should be studied for.…
How to Effectively Study for a Math Test

Numbers and figures are an essential part of our world, necessary for almost everything we do every day. As important…