What is the effective cost of debt

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Reference no: EM131933938

1. Do different types of REITs (i.e., equity REITs and mortgage REITs) have the same risk and return characteristics

2. CBA has $1000 face value bonds issued with 15 years to maturity, 8% coupon paid semiannually and priced at 102.5% to face value. If the tax rate is 35%, what is the effective cost of debt? Show work please.

3. Ajax Corporation has a bond with a coupon rate of 11.5%, maturing in 15 years at a value of $1,000. The bond makes annual interest payments and has a current market price of $920. What is the current yield for the Ajax Corporation bond? Select one: A. 13.52% B. 12.50% C. 11.54% D. 10.34%

Reference no: EM131933938

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