Question
Do not do any interim rounding. Choose the best answer. Chailbis Co filed with the SEC to offer $130.0 million par value of 10-year bonds
Do not do any interim rounding. Choose the best answer.
Chailbis Co filed with the SEC to offer $130.0 million par value of 10-year bonds with a 3.10% coupon. In the time since the memorandum was filed with the agency, interest rates have risen and the investment group underwriting the issue informs Chailbis' CFO the bonds will have to be sold at a yield to maturity of 3.45%. The amountChailbis will raise in the sale of the bonds is closest to:
| A. | $127,926,744. | |
| B. | $126,179,405. | |
| C. | $126,206,390. |
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Introduction To Finance Markets, Investments, And Financial Management
Authors: Ronald W Melicher, Edgar Norton
13th Edition
0470128925, 9780470128923
