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please do A-D and show work! Cost of debt. Dunder-Mifflin, Inc. (DMI) is selling 600,000 bonds to raise money for the publication of new magazines
please do A-D and show work!
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 14.7% 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. $58,776,000 b. $58,854,000 c. $64,026,000 d. $71,436,000 a. What is the cost of debt to DMI if the bonds raise $58,776,000? \% (Round to two decimal places.) Step by Step Solution
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