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Cost of debt with fees. Kenny Enterprises will issue a bond with a par value of $1000, a maturity of twenty years, and a coupon

Cost of debt with fees. Kenny Enterprises will issue a bond with a par value of $1000, a maturity of twenty years, and a coupon rate of 8.0% with semiannual payments, and will use an investment bank that charges $25 per bond for its services. What is the cost of debt for Kenny Enterprises at the following market prices?

A. $920

B. $1,000

C. $1,080

D. $1,173

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