Interactive BPP books for September 2026 exams, recommended by OpenTuition.
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Hi,
Thank you for the clarification, Salvatore and Mr. John 🙂
Hi,
When calculate the current market value of bond, the cost of capital used should be pre-tax or post-tax rate? (as question given both pre and post-tax cost of capital, and also tax rate). How to determine which rate should be used?
Another, when calculate the PV of bond interest (by using annuity method), how to determine whether the tax saving should be deduct from the interest? For example, Sept’16 Q11.
Thank you.
