Hello John I would like to ask you how the cost of debt was calculated in open tuition Mock Exam. it was calculated using a redemption value of 110( at a premium of 10%) but in the question there is no information about the redemption value. I assume it would redeemed at par.
Sorry 🙁 You are correct and it is a mistake. There is no mention about it being redeemed at a premium and therefore you would be correct to assume it would be redeemed at par. I will have it corrected.