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5) A different investment bank offers to underwrite the following 7-year bonds for ABC for its capital raise. Assume interest is compounded semi-annually. Which bond

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5) A different investment bank offers to underwrite the following 7-year bonds for ABC for its capital raise. Assume interest is compounded semi-annually. Which bond should ABC's CFO (Chief Financial Officer) pick in order to minimize the cost to debt for the company? Price (per 100 par value) 70 Issue Bond A Bond B Bond C Bond D Coupon Zero 3% 4% 6% 90 98 100 a) Bond A b) Bond B c) Bond C d) Bond D 1 ha

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