Berkman Investment Bank has the following bond deals under way:

Determine the net proceeds of each bond and the cost of the bonds for each company in terms of yield. The bond yield in the table is the market yield before the commission is charged. Assume that all bonds are semiannual and issued at a par value of$1,000.

Transcribed Image Text:

Company Rawlings Wilson Louis Sluggers Spalding Champions Bond YieldCommission 7.0% 7.5% 7.5% 8.0% 8.5% Coupon Rate 2% of Sale Price 3% of Sale Price 2% of Sale Price 4% of Sale Price 3% of Sale Price 0.0% 8.5% 9.0% 7.0% 6.5% Maturity 20 years 20 years 10 years 20 years 30 years