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Debt Issued at Par

Debt Issued at Par:

Debt issued at par means, debt is issued at the face value of the debt. It may be calculated with the help of the following formula.

Kd = (1 – t) R

finance
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Where,

Kd = Cost of debt capital

t = Tax rate

R = Debenture interest rate

Debt Issued at Par Debt Issued at Par Reviewed by Ikpokolo Francis on Tuesday, May 02, 2017 Rating: 5

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