Calculate the cost of debenture

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Question

A 7 year Rs 100 debenture is available at a net cost of Rs 95. The coupon rate is 15% and the bond will be redeemed at a premium of 6% on maturity. The firm's tax rate is 40%. Calculate the cost of debenture.

Reference no: EM133239636

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Calculate the cost of debenture : A 7 year Rs 100 debenture is available at a net cost of Rs 95. Calculate the cost of debenture.
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