[zahirahsaadullah]

Alright sir. Thank you for the reply!

[zahirahsaadullah]

Hi sir, if a question asks on the cost of debt for the bond, eg the new bond in levante, do we simply take 6.12%*(1-t) which is the yield curve + credit spread, or do we find the cost of debt using the irr method with post tax interest cash flow after market value of the bond here has been estimated using the annual spot yield curve, of which in b(i) it is at 95.72.

i havent come across any such question but just in case such question like levante has additional question on cost of debt, and tax rate was given, i’d appreciate your advice on how to approach such question.

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