Multiple Choice
A firm issues $170 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 ________.
A) $150 million
B) $158 million
C) $167 million
D) $175 million
Correct Answer:
Verified
Correct Answer:
Verified
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