Question

I am trying to complete this question in excel: What is the market interest rate on XYZ’s debt and its component

cost of debt?

Coupon rate

12%

Coupons per year

2

Years to maturity

15

Price

$1,153.72

Face value

$1,000

Tax rate

40%

 I know I need the Current Value, Future Value, Monthly payments and number of payments: I have the current Value @ 1000, Monthly payment @ 1,153.72 and number of payments at 60, I can’t figure out how to determine the future value, and then how to enter this all in excel. would you be able to help me?

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