Please solve the problem max in 30-60 minutes max. I'm waiting please. Thank u 1. A company partially financed by long-term debt has issued bonds with a characteristic nominal value of IDR 10000, an interest rate of 10% and a maturity of 5 years. If the bond is estimated to have a market price of IDR 9500. Determine the required rate of return (kd) and cost of capital after tax (ki) for the bond if the tax rate is 30%. Notes; to make it easier to find kd you can use the following formula:

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.18E
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Please solve the problem max in 30-60 minutes max. I'm waiting please. Thank u 1. A company partially financed by long-term debt has issued bonds with a characteristic nominal value of IDR 10000, an interest rate of 10% and a maturity of 5 years. If the bond is estimated to have a market price of IDR 9500. Determine the required rate of return (kd) and cost of capital after tax (ki) for the bond if the tax rate is 30%. Notes; to make it easier to find kd you can use the following formula:
1+ (MV — Ро)/n
Approx YTM (Kd) =
%3D
(MV+Po)/2
Transcribed Image Text:1+ (MV — Ро)/n Approx YTM (Kd) = %3D (MV+Po)/2
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