A Firm Issues $500 Million in Straight Bonds at Par

question 101

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 the net amount of funds that the debt issue will provide for the firm?

• A)$475 million
• B)$485 million
• C)$505 million
• D)$500 million

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Clauses within a contract that outline the process for resolving disagreements or disputes between the parties involved.

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