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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
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
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