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What is the cost of debt when bonds incur a $25 charge and have a par...

What is the cost of debt when bonds incur a $25 charge and have a par value of $1000, a price of $900, a coupon rate of 4.5% and a maturity of 10 years?

Please show formula and work

It doesn't say but I guess assume annual coupons

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Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

i have used YTM approximation formula as nothing is mentionedBOND - Microsoft Excel (Product Activation Failed) Add-Ins File Home Insert Page Layout Formulas Data Review View - 2x % Cut

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