Cost of debt with fees Kenny Enterprises will issue a bond with a par value of $1,000, a maturity of twenty years, and a coupon rate of 9.6% 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. $959.56 b. $992.39 c. $1,060.96 d. $1,144.77 ACCES a. What is the cost of debt for Kenny Enterprises at a market price of $959.56? % (Round to two decimal places.)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Cost of debt with fees Kenny Enterprises will issue a bond with a par value of $1,000, a maturity of twenty years,
and a coupon rate of 9.6% 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. $959.56
b. $992.39
c. $1,060.96
d. $1,144.77
ACCES
a. What is the cost of debt for Kenny Enterprises at a market price of $959.56?
% (Round to two decimal places.)
Transcribed Image Text:Cost of debt with fees Kenny Enterprises will issue a bond with a par value of $1,000, a maturity of twenty years, and a coupon rate of 9.6% 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. $959.56 b. $992.39 c. $1,060.96 d. $1,144.77 ACCES a. What is the cost of debt for Kenny Enterprises at a market price of $959.56? % (Round to two decimal places.)
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