Question: Kenny Enterprises will issue the same debt in Problem 3 but now will use an investment banker that charges $25 per bond for their services.

Kenny Enterprises will issue the same debt in Problem 3 but now will use an investment banker that charges $25 per bond for their services. What is the new for Kenny Enterprises at a market price of
a. $920?
b. $1,000?
c. $1,080?
d. $1,173?

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a If the bond sells for 920 and Kenny pays 25 per bond the net proceeds are 895 895 1000 1 YTM2 40 ... View full answer

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