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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
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 13.7% 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. $58,044,000 b. $52,506,000 c. $68,514,000 d. $72,516,000 a. What is the cost of debt to DMI if the bonds raise $58,044,000 ? \% (Round to two decimal places.)
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