Kenny Enterprises will issue the same debt in Problem 3 but now will use an investment banker

Question:

Kenny Enterprises will issue the same debt in Problem 3 but now will use an investment banker that charges $25 per bond for their services. What is the new for Kenny Enterprises at a market price of
a. $920?
b. $1,000?
c. $1,080?
d. $1,173?

Cost Of Debt
The cost of debt is the effective interest rate a company pays on its debts. It’s the cost of debt, such as bonds and loans, among others. The cost of debt often refers to before-tax cost of debt, which is the company's cost of debt before taking...