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If the firm issues $1,000,000,000 in 8% 10-year bonds (with interest paid semi-annually) when the market rate is 6%, a. how much cash would the

If the firm issues $1,000,000,000 in 8% 10-year bonds (with interest paid semi-annually) when the market rate is 6%,

a. how much cash would the company receive at the time the bond was sold?

b. After this bond issue, what would be the new Debt/Equity ratio?

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