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A company has 7% loan notes in issue which are

2022-01-31 07:42:56 问答库 阅读

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A company has 7% loan notes in issue which are redeemable in seven years’ time at a 5% premium to their nominal value of $100 per loan note. The before-tax cost of debt of the company is 9% and the after-tax cost of debt of the company is 6%. What is the current market value of each loan note?
A.$92·67
B.$108·90
C.$89·93
D.$103·14请帮忙给出正确答案和分析,谢谢!

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