2. Accounting
3. kaylin has been presented with the following information about bonds...

# Question: kaylin has been presented with the following information about bonds...

###### Question details

Kaylin has been presented with the following information about bonds issued at a discount by Riley Corp.:

Face value: $400,000 Interest rate: 6% Term: Five years Cash received from bondholders:$392,000

Market interest rate: 5%

Based on this information, what is the cost of borrowing for Riley Corp.?