Dear Sir
In SBR I am doing tables (similar to lease tables) with opening balance interest and coupon with closing balance. It refers to the effective interest rate. is that the IRR rate we find when working out the cost of the debt?
Ask the Tutor ACCA AFM
Cost of debt
Without knowing exactly what the question is asking for, it would seem that it would be the IRR as you have written.
It would be better to ask this in the SBR Ask the Tutor Forum.
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