FINA issued 30-year bond 5 years ago. The current market value of the debt is $50M. The face value of the bond is $44.5M. The coupon rate is 6%. The bond pays coupon semiannually. What is the current cost of debt? 2.90% 2.56% 5.12% O 5.80%

FINA issued 30-year bond 5 years ago. The current market value of the debt is $50M. The face value of the bond is $44.5M. The coupon rate is 6%. The bond pays coupon semiannually. What is the current cost of debt? 2.90% 2.56% 5.12% O 5.80%

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 3EA: Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the...

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Question

FINA issued 30-year bond 5 years ago. The current market value of the debt is $50M. The face value of the bond is $44.5M. The
coupon rate is 6%. The bond pays coupon semiannually. What is the current cost of debt?
2.90%
2.56%
5.12%
5.80%

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