A firm raises capital by selling ​$35,000 worth of debt with flotation costs equal to 3​% of its par value. If the debt matures in 15 years and has an annual coupon interest rate of 11​%, what is the​ bond's YTM?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
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A firm raises capital by selling ​$35,000 worth of debt with flotation costs equal to 3​% of its par value. If the debt matures in 15 years and has an annual coupon interest rate of 11​%, what is the​ bond's YTM?

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