Multiple Choice
A firm issues $200 million in straight bonds at par and a coupon rate of 7%. The firm pays fees of 2.5% on the face value of the bonds. What is the net amount of funds that the debt issue will provide for the firm?
A) $195 million
B) $186 million
C) $205 million
D) $200 million
Correct Answer:
Verified
Correct Answer:
Verified
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