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Cost of debt with fees.Kenny Enterprises will issue a bond with a par value of $11,000, a maturity of twenty years, and a coupon rate of 10.6% with semiannual payments, and will use an investment bank that charges $25 per bond for its services. What is the cost of debt for Kenny Enterprises at the following market prices?

a.$925.89

b.$1,003.95

c.$1,112.25

d.$1183.58

a. What is the cost of debt for Kenny Enterprises at a market price of $925.89?

b.What is the cost of debt for Kenny Enterprises at a market price of $1,003.95?

c.What is the cost of debt for Kenny Enterprises at a market price of $1,112.25?

d.What is the cost of debt for Kenny Enterprises at a market price of $1,183.58?

 

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