Question
A large industrial business is considering issuing a $10m face value, 4-year 6% annual coupon bond with a 10% YTM. There is a 1% underwriting
A large industrial business is considering issuing a $10m face value, 4-year 6% annual coupon bond with a 10% YTM. There is a 1% underwriting fee, calculated on the total face value of the bond, along with $50,000 in various legal, advisory and accounting fees. What is the companys % all-in-cost (AIC)?
- 11.50%
- 10.52%
- 10.48%
- 10.32%
- 10.15%
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Sport Finance
Authors: Gil Fried, Timothy D. DeSchriver, Michael Mondello
3rd Edition
1450421040, 978-1450421041
