A Firm Issues $250 Million in Straight Bonds at an Original

question 92

Multiple Choice

A firm issues $250 million in straight bonds at an original discount of 0.75% and a coupon rate of 9%. The firm pays fees of 3% on the face value of the bonds. The net amount of funds that the debt issue will provide for the firm is closest to which of the following?

• A)$246 million
• B)$260 million
• C)$241 million
• D)$254 million

---

Definitions:

Technological Advance

The development and application of innovative techniques, equipment, and processes in various fields, leading to improved efficiency and productivity.

External Force

A force that acts on an object or system from outside its boundaries, influencing its behavior or direction.

Modern View

A contemporary or current perspective on various subjects, often reflecting the latest developments, trends, and ideas in a field.

Product Innovation

The development and sale of a new or improved product (or service).