Kenny Enterprises has just issued a bond with a par value of $1000, twenty years to maturity, and an 8 coupon rate with semiannual payments What is the cost of debt for Kenny Enterprises if the bond sells at the following prices What do you notice about the price and the cost of debt a $ 920 b $ 1,...

a If the bond sells for 920 we have 920 1000 1 YTM2 40 40 1 11 YTM2 40 YTM2 And solving via a calcul ...

Kenny Enterprises has just issued a bond with a par value of $1000, twenty years to maturity,

Question:

Kenny Enterprises has just issued a bond with a of $1000, twenty years to maturity, and an 8% rate with semiannual payments. What is the for Kenny Enterprises if the bond sells at the following prices? What do you notice about the price and the $ 920
b. $ 1,000
c. $ 1,080
d. $ 1,173

Cost Of Debt
The cost of debt is the effective interest rate a company pays on its debts. It’s the cost of debt, such as bonds and loans, among others. The cost of debt often refers to before-tax cost of debt, which is the company's cost of debt before taking... Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...