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Kenny Enterprises has just issued a bond with a par value of $1,000, twenty years to maturity, and an 8% coupon rate with semiannual payments.

Kenny Enterprises has just issued a bond with a par value of $1,000, twenty years to maturity, and an 8% coupon rate with semiannual payments. a. What is the cost of debt for Kenny Enterprises if the bond sells at the following prices? Show your work. 1. $920 2. $1,000 3. $1,080 4. $1,173 b. What do you notice about the price and cost of debt? Answer in complete sentences.

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