Icu window, inc., is trying to determine its cost of debt. the firm has a debt issue outstanding with ten years to maturity that is quoted at 113.5 percent of face value. the issue makes semiannual payments and has an embedded cost of 9.6 percent annually. what is the company's pretax cost of debt?

Pre-tax cost of debt is calculated as -

Yield to maturity = [ Coupon payment + ( Face value - Price) / Number of periods ] / [ ( Face value - Price) / 2 ]

Coupon payment = 9.6 % / 2 * 1000 = $ 48

Face Value = 1000

Price = 113.5 % * $ 1000 = $ 1135

Number of periods = 20 (i.e. 10 years *2 )

Yield to maturity = [ $ 48 + ( $ 1000 - $ 1135) / 20] / [ ($ 1000 + $ 1135) /2 ]

Yield to maturity = 3.86 %

Annual yield to maturity = 3.86 % * 2 = 7.72 %

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.