I am currently conducting an NPV analysis on whether to issue an amortizing loan or a bullet bond. However I am having trouble choosing a discount rates to use for the cashflows. Does curious if anyone could point me in the right direction.
Thanks作者: jacksparrow 时间: 2011-10-11 00:16
The investor would use your cost of debt. And that would be a reasonable start for you too.
(When you say "rates" -- do you want to use a term structure rather than a single yield? that would be fine -- in which case you'll want to calculate your Kd by tenor, rather than using a single (say, 10y) value.)
