Calculating Costs of Issuing Debt Tennis Games, Inc., with the help of its investment bank recently issued $26.30 million of new debt. The offer price (and face value) on the debt was $5,000 per bond and the underwriter's spread was 7 percent of the gross proceeds. What is the amount of capital funding Tennis Games, Inc. raised through this debt offering?
Calculating Costs of Issuing Debt Tennis Games, Inc., with the help of its investment bank recently issued $26.30 million of new debt. The offer price (and face value) on the debt was $5,000 per bond and the underwriter's spread was 7 percent of the gross proceeds. What is the amount of capital funding Tennis Games, Inc. raised through this debt offering?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Calculating Costs of Issuing Debt Tennis Games, Inc., with the help of its investment bank recently issued $26.30 million of new debt. The offer price (and face value) on the debt was $5,000 per bond and the underwriter's spread was 7 percent of the gross proceeds. What is the amount of capital funding Tennis Games, Inc. raised through this debt offering?
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