Top 3 Methods for Computation of Cost of Debt
This article throws light upon the top three methods for computation of cost of debt. The methods are: 1. Debt Issued at Par 2. Debt Issued at a Premium or at a Discount 3. Cost of Redeemable Debt. Method # 1. Debt Issued at Par: The method of computation for ascertaining cost of debt which is issued at par is [...]