Multiple Choice
A firm issues $500 million in straight bonds at par and a coupon rate of 5%. The firm pays fees of 3% on the face value of the bonds. What is the net amount of funds that the debt issue will provide for the firm?
A) $485 million
B) $500 million
C) $505 million
D) $475 million
Correct Answer:
Verified
Correct Answer:
Verified
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