23

23. Peter Parker Corp. plans to issue a $1,000 par value, semi-annual pay bond with 20 years to maturity and a coupon rate of 5.50%. The company expects the bonds to sell for $810.00. MC Inc's cost of debt is estimated to be %. a. 7.00 b. 7.11 c. 7.21 d. 7.32 e. 7.43