Answer:
8.704%
Step-by-step explanation:
The computation of the before cost of debt is as follows
Given that
Future value = $100
Present value = $103
NPER = 25 × 2 = 50
PMT = $100 × 9% ÷ 2 = $4.5
The formula is presented below:
= -RATE(NPER;PMT;PV;FV;TYPE)
After applying the above formula, the rate is 4.3518%
Yearly rate is
= 4.3518% ×2
= 8.704%
