Question

Dunder-Mifflin, Inc. (DMI) is selling 600,000 bonds to raise money for the publication of new magazines in the coming year. The bonds will pay a coupon rate of 12% on semiannual payments. The bond's par value is $100, and the bond will mature in thirty years. What is the cost of debt to DMI if the bonds raise
a. $45,000,000?
b. $54,000,000?
c. $66,000,000?
d. $75,000,000?



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  • CreatedMay 08, 2014
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