I am having issues with the calcultor, help needed.
Fairyland Inc. has a $6 million (face
value) 30 year bond issue selling for 105.9 percent of par that pays an annual coupon of 8.0%. What would be Fairyland’s before-tax component cost of debt?
Solving using the Financial Calculator App,
Or, using Excel: =RATE(N,PMT,-PV,FV)