A Firm Issues $200 Million in Straight Bonds at Par

question 96

Multiple Choice

A firm issues $200 million in straight bonds at par and a coupon rate of 7%. The firm pays fees of 4.0% on the face value of the bonds. What is the net amount of funds that the debt issue will provide for the firm?

• A) $182.4 million
• B) $211 million
• C) $192 million
• D) $202 million

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