Soccer Games, Inc

Multiple Choice

Soccer Games, Inc., with the help of its investment bank recently issued $10 million of new debt. The offer price (and face value) on the debt was $1,000 per bond and the underwriter's spread was 5 percent of the gross proceeds. What is the amount of capital funding Soccer Games raised through this debt offering?

A) $1,000
B) $0.5 million
C) $9.5 million
D) $10 million