Q2. Cost of debt. Dunder-Mifflin, Inc.(DMI) is selling600,000 bonds to raise money for the publication of new magazines in the coming year. The bond will pay a coupon rate of 15.4% 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 issuingcosts)?

What is the cost of debt % to DMI if the bonds raise:

a.$58,902,000

b.$56,892,000

c.$62,358,000

d.$71,946,000