# cost of debt finance homework help i am so suck!

Calculating cost of debt: Jiminy's Cricket Farm issued a 30-year, 10 percent semi-annual bond 7 years aog. The bond currently sells for 108 percent of
its face value. The company's tax rate is 30 percent. What is the pretax cost of debt?
the books answer says its: P0 = \$1,080 = \$50(PVIFAR%,46) + \$1,000(PVIFR%,46) R = 4.58% YTM = 2 × 4.58% = 9.16%
but where did they get the \$50 dollar value from?
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