What is the weighted average cost of debt

Reference no: EM133559777

Question: What is the weighted average cost of debt of the following bonds using book value weights and using the market value weights.

callable bonds

bond a callable 9/1/2047 price =79.97 quantity= 100,000

bond b callable 11/1/2049 price=67.06 quantity= 1,025,000

bond c callable 12/1/2026 price = 93.59 quantity= 190,000

	Coupon Rate	Maturity	YTM
Bond A	4.1%	3/1/2048	5.616%
Bond B	3.1%	5/1/2050	5.463%
Bond C	3.25%	3/1/2027	5.315%

Reference no: EM133559777

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