Question: Kenny Entierprises will issue a bond with a par value of $1,000, a maturity of twenty years, and a coupon rate of 10.9% with semiannual

Kenny Entierprises will issue a bond with a par value of $1,000, a maturity of twenty years, and a coupon rate of 10.9% with semiannual patments, and will use an investment bank that charges $10 per bond for its services. What is the cost of debt for Kenny Enterprises at the following market prices?

a. $942.17

b. $1,000.14

c. $1,110.09

d. $1,137.55

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