Advantages-disadvantages of debt as a form of financing


Question 1. Gray House is issuing bonds paying $110 annually that will mature ten years from today. The bond is currently selling for $970. The face value of the bonds is $1,000
Calculate:

a) Coupon Rate

b) Current Yield

c) Yield To Maturity

Question 2. What are the advantages and disadvantages of using debt as a form of financing? Please state two advantages and two disadvantages.

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Finance Basics: Advantages-disadvantages of debt as a form of financing
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