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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
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