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Cost of debt. Kenny Enterprises tas just issuod a bond with a par value of $1,000, a maturity of twenty years, and a coupon rate
Cost of debt. Kenny Enterprises tas just issuod a bond with a par value of $1,000, a maturity of twenty years, and a coupon rate of 8.4% with semiannual payments. What is the cost of debt for Kenny Enterprises if the bond sells at the following prices? What do you notice about the price and the cost of debt? a. $941.28 b. $1,000.00 c. $1,038,57 d. $1,187,06 a. What is the cost of debt for Kenny Enterprises if the bond sells at $941.28 ? 1. (Round to two decimal places.) b. What is the cost of debt for Kenny Enterprises if the bond sells at $1,000.00 ? (Round to two decimal places.) What is the cost of debt for Kenny Enterprises if the bond sells at $1,038.57 ? * (Round to two decimal places.) Cost of debt Kenny Enterprises has just issued a bond with a par value of $1,000, a maturity of twenty years, and a coupon rate of 8.4% with 5emiannual payments. What is the cost of dabt for Kenny Enterprises if the bond sells at the following prices? What do you notice about the price and the cost of debt? a. $941.28 b. $1,000,00 c. $1,038,57 d. $1,187,06 d. What is the cost of debt for Kenny Enterprises if the band solls at $1,187,00 ? 6 (Round to two decimal places) What do you notice about the price and the cost of debt? (Select the best response.) A. The price of the bond increases as the cost of debt increases, all else equal. The price of the bond is $941.28 when the cost of debt is 6.69% and increases to $1,187.06 when the cost of debt increases to 9.04%. B. The price of the bond increases as the cost of debt decreases, all else equal. The price of the bond is $941.28 when the cost of debt is 9.04% and increases to $1,187,06 when the cost of debt decreases to 6.69%
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