acct229 at Texas A&M

6. Borrowing Cost

in Chapter 10 (Video 6 of 8)
With bonds selling at discounts and premiums, how do we find out what the real cost to borrow actually is? Well, there are two methods and we'll give both a shot.

This Video Mentioned Some Formulas

Cash Out
– Cash In
Cost of Borrowing (Bonds)
Cash Payments
– Premium
+ Discount
Cost of Borrowing (Bonds)

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