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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Finance cost
Hi can you help me solve this. The EIR was not given. Should we find eir or how to go about this question.
On 1/1/2015 entity issued debt instrument coupon rate @3.5% at par of $6m. Direct issue cost $120K Debt repayable in 31/12/2021 at premium $1.1m
Find total finance cost.
Hi,
You will always be given the effective interest rate in the question. It’s a bit odd that they haven’t given it to you here.
If you wish to calculate it then you need to calculate the IRR of the cash flows.
Thanks
oh ok thanks!