What is the cost of debt to dmi

Reference no: EM13266341

Cost of debt. Dunder-Mifflin Inc. (DMI) is selling 600,000 bonds to raise money for new magazines to be published in the coming year. The bonds will pay a coupon rate of 10.7% on semiannual payments. The par value of the bond is $100, and the bond will mature in thirty years. What is the cost of debt to DMI if the bonds raise the following amounts (ignoring issuing cost)?

57,672,000
56,784,000
68,646,000
78,582,000

Reference no: EM13266341

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