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Cullumber Inc. is issuing 10,000 bonds, and its investment banker has guaranteed a price of $992 per bond. If the investment banker sells the entire
Cullumber Inc. is issuing 10,000 bonds, and its investment banker has guaranteed a price of $992 per bond. If the investment banker sells the entire issue to investors for $10,192,000. (Round percentage underwriting cost to 2 decimal places, e.g. 17.54%.)
a. What is the underwriting spread for this issue? $
b. What is the percentage underwriting cost? %
c. How much will Cullumber raise?
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