What is the cost of debt for kenny enterprises

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A) Kenny Enterprises has just issued a bond with a par value of $1000, twenty years to maturity, and an 8% coupon rate with semiannual payments. What is the cost of debt for Kenny Enterprises if the bond sells at $920? (Hint: you need to use Excel to answer this question.)

B) Answer question A) if Kenny Enterprises has to pay $25 per bond to an investment bank to help them in the bond issuance process.

Reference no: EM132042207

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