Multiple Choice
A firm issues $525 million in straight bonds at an original issue discount of 2% and a coupon rate of 5%. The firm pays fees of 2% on the face value of the bonds. What is the net amount of funds that the debt issue will provide for the firm?
A) $580 million
B) $554.4 million
C) $529 million
D) $504 million
Correct Answer:
Verified
Correct Answer:
Verified
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