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What is the cost of debt for Kenny Enterprises

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Question - Kenny Enterprises will issue a bond with a par value of1,000, a maturity of twenty years, and a coupon rate of9.6% with semiannual payments, and will use an investment bank that charges $20 per bond for its services. What is the cost of debt for Kenny Enterprises at the following market prices?

a. 924.69

b. 1,000.04

c. 1,088.77

d. 1195.04

Reference no: EM132477996

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