Cost of debt. Kering Enterprises has just issued a bond will a par value of $1,000, a maturity of twenty years, and a coupon rate of 10.5% with serniarinis payinens. What is the cos. of debil far Keriny Enterprises if the bond sels at the following prices? What do you notice about the price and the cost of deb.? a. $97243 b. S1.000.00 c. 31.031.48 d. S1,174.55 a. What is the most af debt for Kenny Enterprises if the band sells at $972.437 % (Round lo two decimal places.) b. What is the cost of debt for Ronny Enterprises if the bond sells at $1.000,00? % (Round to tac decitral places.) c. What is the cost of debt for Kenny Enterprises in the bord sela at $1,031 AU? 6 (Round to tac decimal places.) d. What is the cost of debt for Kenny Enterprises if the bond sells at $1,174.55? $ (Round to the decimal places.) W-al do you rolice about the price and the cusl of debt? (Select the bes. response.) O A. The price of the bond increases as the cost of debt increases, all else equal. The price of the bond is $972.43 when the cost of debt is 8.65% and increases to $1,174.55 when the cost of debt increases to 10.81%. B. The price af the bond increases as the cast af debt decreases, all else equal. The price af the bond is $972.43 when the cost of debitis 10.84% and increases to $1,174.55 when the cos. of detit decreases ta 8.85%