Jeeyu Ltd., is incorporated as per Companies Act, 2013, one year ago, in the State of Maharashtra. The first year's operation is being successful and company has worked above the breakeven point. The management of Jeeyu

Jeeyu Ltd., is incorporated as per Companies Act, 2013, one year ago, in the State of Maharashtra. The first year's operation is being successful and company has worked above the breakeven point. The management of Jeeyu is thinking to manage ₹10 lakh, from the market. To avail the benefit of trading on equity, they are planning to make issue of debentures. The investment banker has suggested that they could issue the debentures at the face value of ₹100 and can offer the interest rate 11%. One of the directors has mentioned that, now-a-days investors are expecting the rate of return 12.50%. The company covered under the tax rate of 33%. You are required to work out: (a) The issue price of debenture in terms of per debenture, and (b) The effective cost of debentures from the view point of Jeeyu Ltd.