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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please just answer question D ONLY ........ for the amount of $1,173 ONLY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PLEASE ONLY ANSWER QUESTION

D..... Only for $1173 amount ONLY I have answered the other questions already 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

#3 Cost of debt
3. Cost of debt. Kenny Enterprises has just issued a bond with a par value
bf $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
Transcribed Image Text:#3 Cost of debt 3. Cost of debt. Kenny Enterprises has just issued a bond with a par value bf $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
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