question archive Gertrude's Great Gloves issue bonds with a face value of $10,000, paying interest at j2 = 5
Gertrude's Great Gloves issue bonds with a face value of $10,000, paying interest at j2 = 5
Subject:FinancePrice: Bought3
Gertrude's Great Gloves issue bonds with a face value of $10,000, paying interest at j2 = 5.50%, redeemable in exactly 15 years. An investor purchases the bond for $11,930.14. Calculate the cost of debt (j2) for Gertrude's Great Gloves. You may give your answer as a percentage per annum to the nearest percent or use linear interpolation or a financial calculator to give a more accurate result.
Cost of debt = % pa
