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cost of debt. Dunder-Mifflin, Inc. (DMI) is selling 600000 bonds to raise money for the publication of new magazines in the coming year. The bond
cost of debt. Dunder-Mifflin, Inc. (DMI) is selling 600000 bonds to raise money for the publication of new magazines in the coming year. The bond will pay a coupon rate of 12.1% 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. $58,452,000 b. $55,026,000 c. $71,460,000 d. $75,192,000
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