Question
Instructions Do not do any interim rounding. Chailbis Co filed with the SEC to offer $130.0 million par value of 10-year bonds with a 3.10%
| Instructions | Do not do any interim rounding. |
|---|
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 amount Chailbis will raise in the sale of the bonds is closest to:
| A. | $126,206,390. | |
| B. | $126,179,405. | |
| C. | $127,926,744. |
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International Financial Management
Authors: Cheol Eun
9th Edition
1260788865, 9781260788860
