Cost of debt with fees. Dunder-Mifflin, Inc.? (DMI) is selling? 600,000 bonds to raise money for...

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Cost of debt with fees. Dunder-Mifflin, Inc.?(DMI) is selling? 600,000 bonds to raise money for the publicationof new magazines in the coming year. The bonds will pay a couponrate of 8.4?% with semiannual payments and will mature in 30 years.Its par value is ?$100. DMI hires an investment banker for the saleof the? 600,000 bonds. The investment banker charges a fee of 2?%on each bond sold. What is the cost of debt to DMI if the followingare the proceeds before the? banker's fees are? deducted?
a. $46,668,000? %? (Round to two decimal? places.)
b. ?$55,344,000? % (Round to two decimal? places.)
c. ?$72,354,000? ?% (Round to two decimal? places.)
d. ?$82,200,000? ?% (Round to two decimal? places.)

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a Price of the bond per 100 46668000600000 7778EAR of coupon 184221858Investor See Answer

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Cost of debt with fees. Dunder-Mifflin, Inc.?(DMI) is selling? 600,000 bonds to raise money for the publicationof new magazines in the coming year. The bonds will pay a couponrate of 8.4?% with semiannual payments and will mature in 30 years.Its par value is ?$100. DMI hires an investment banker for the saleof the? 600,000 bonds. The investment banker charges a fee of 2?%on each bond sold. What is the cost of debt to DMI if the followingare the proceeds before the? banker's fees are? deducted?a. $46,668,000? ________%? (Round to two decimal? places.)b. ?$55,344,000? ________% (Round to two decimal? places.)c. ?$72,354,000? ________?% (Round to two decimal? places.)d. ?$82,200,000? ________?% (Round to two decimal? places.)