Multiple Choice
A firm issues $160 million in straight bonds at par and a coupon rate of 8.5%. The firm pays fees of 2% 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) $157 million
B) $146 million
C) $160 million
D) $154 million
Correct Answer:
Verified
Correct Answer:
Verified
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