Tennis Games, Inc

question 59

Multiple Choice

Tennis Games, Inc., with the help of its investment bank recently issued $25 million of new debt. The offer price (and face value) on the debt was $1,000 per bond and the underwriter's spread was 8 percent of the gross proceeds. What is the amount of capital funding Tennis Games raised through this debt offering?

• A) $1,000
• B) $2 million
• C) $23 million
• D) $25 million

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