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
Where,
Kd = Cost of debt capital
t = Tax rate
R = Debenture interest rate
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
[Post Image Courtesy of Stuart Miles at FreeDigitalPhotos.net]
Where,
Kd = Cost of debt capital
t = Tax rate
R = Debenture interest rate
Debt Issued at Par
![Debt Issued at Par]()
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Tuesday, May 02, 2017
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