A) Kenny Enterprises has just issued a bond with a par value of $1000, twenty years to maturity, and an 8% coupon rate with semiannual payments. What is the cost of debt for Kenny Enterprises if the bond sells at $920? (Hint: you need to use Excel to answer this question.)
B) Answer question A) if Kenny Enterprises has to pay $25 per bond to an investment bank to help them in the bond issuance process.