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Cost of debt. Dunder-Mifflin, Inc. (DMI) is selling 600,000 bonds to raise money for the publication of new magazines in
Posted: Fri Jul 01, 2022 7:47 am
by answerhappygod
- Cost Of Debt Dunder Mifflin Inc Dmi Is Selling 600 000 Bonds To Raise Money For The Publication Of New Magazines In 1 (22.98 KiB) Viewed 32 times
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 13.1% 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. $57,714,000 b. $55,272,000 c. $67,830,000 d. $75,852,000