7. Kiran Industries Ltd. has issued bonds with a face value of ₹1,00,000 at an annual coupon rate of 7%. The bonds are currently trading at 93% of…

CA Intermediate · Financial Management and Strategic Management · MTP · September 2026
7. Kiran Industries Ltd. has issued bonds with a face value of ₹1,00,000 at an annual coupon rate of 7%. The bonds are currently trading at 93% of their face value. What is the approximate cost of debt for the company before taxes?
(A) (a) 7.00%
(B) (b) 7.53%
(C) (c) 8.00%
(D) (d) 6.65%

Suggested Answer and Working Notes:

Correct Answer: Option (B)

(b) 7.53%

Topics: Part-A: Financial Management

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