Question: Kenny Enterprises will issue a bond with a par value of $, a maturity of twenty years, and a coupon rate of % with semiannual

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

a. $926.82

b. $1,004.43

c. $1,067.24

d. $1,170.61

$1000 par value

9.7% coupon rate

$20 per bond

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