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Dunder-Mifflin, Inc. (DMI) is selling 600,000 bonds to raise money for the publication of new...

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Finance

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.$58, 554, 000 b.$57 ,756 ,000 c.$62,562,000 d.$75,714,000

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