Please just answer question D ONLY ........ for the amount of $1,173 ONLY PLEASE ONLY ANSWER QUESTIOND..... Only for $1173 amount ONLY I have answered the other questions already #3 Cost of debt3. Cost of debt. Kenny Enterprises has just issued a bond with a par valuebf $1,000, a maturity of twenty years, and an 8% coupon rate with semiannualpayments. What is the cost of debt for Kenny Enterprises if the bond sells atthe following prices? What do you notice about the price and the cost of debt?a. $920b. $1,000c. $1,080d. $1,173

As requested to solve only sub part D we are answering only D part.

3. Cost of debt. Kenny Enterprises has just issued a bond with a par value b$1,000, a maturity of twenty years, 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. $1,000 c. $1,080 d. $1,173

3. Cost of debt. Kenny Enterprises has just issued a bond with a par value b$1,000, a maturity of twenty years, 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. $1,000 c. $1,080 d. $1,173

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter11: Determining The Cost Of Capital

Section: Chapter Questions

Problem 9P: Bond Yield and After-Tax Cost of Debt A companys 6% coupon rate, semiannual payment, 1,000 par value...

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