Multiple Choice
BC Brewery issues $120 million in straight bonds at an original issue discount of 1.5% and a coupon rate of 5%.The firm also pays underwriting fees of 3% on the face value of the bonds.What are the net proceeds to BC Brewery from the bond issue?
A) $114.6 million
B) $118.2 million
C) $116.4 million
D) $108.6 million
E) $110.4 million
Correct Answer:
Verified
Correct Answer:
Verified
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