Cost of Debt Formula

The cost of debt formula is equal to (I + (M-NP)/n) / (M + NP) / 2 to calculate cost of debt before taxes. For " I" , you would use the Dollar Return. For " M" , you would use the Maturity Value. For " NP" , you would use the Net Proceeds of Issue. For " n" , you would use the number of years.
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