A P1000 000.00 issue of 3%, 15-year bonds is sold at 95% The miscellaneous initial expense of the financing were P20 000 00 and yearly expenses of P2000 00 is incurred What is the true cost the company is paying for the money it borrowed? (Ans. 3.8%)

A P1000 000.00 issue of 3%, 15-year bonds is sold at 95% The miscellaneous initial expense of the financing were P20 000 00 and yearly expenses of P2000 00 is incurred What is the true cost the company is paying for the money it borrowed? (Ans. 3.8%)

Name: 14. A P1000 000.00 issue of 3%, 15-year bonds is sold at 95% The misc
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Description: 14. A P1000 000.00 issue of 3%, 15-year bonds is sold at 95% The miscellaneousinitial expense of the financing were P20 000 00 and yearly expenses of P200000 is incurred What is the true cost the company is paying for the money itborrowed? (Ans. 3.8

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter3: The Financial Environment: Markets, Institutions And Investment Banking

Section: Chapter Questions

Problem 10PROB

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