Multiple Choice
A firm issues $250 million in straight bonds at an original issue discount of 1.5% and a coupon rateof 6%. The firm pays fees of 3% on the face value of the bonds. The net amount of funds that the debt issue will provide for the firm is closest to which of the following?
A) $225 million
B) $250 million
C) $239 million
D) $261 million
Correct Answer:
Verified
Correct Answer:
Verified
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