Cost of

debt.

Dunder-Mifflin, Inc. (DMI) is selling 600,000 bonds to raise money for the publication of new magazines in the coming year. The bond will pay a coupon rate of

10.5%

with semiannual payments and will mature in 30 years. Its par value is

$100.

What is the cost of debt to DMI if the bonds raise the following amounts (ignoring issuing costs)?

a.$57,684,000

b.$53,646,000

c.$73,416,000

d.$ 78,504,000

a. What is the cost of debt to DMI if the bonds raise

$57,684,000?

(Round to two decimal places.)

b.What is the cost of debt to DMI if the bonds raise

$53,646,000? (Round to two decimal places.)

c.What is the cost of debt to DMI if the bonds raise

$73,416,000? (Round to two decimal places.)

d.What is the cost of debt to DMI if the bonds raise

$78,504,000? (Round to two decimal places.)