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Jimstan & Jimstan Corp. can sell a new 10-year bond with an annual coupon of 5.3% and a face value of $1,000 for $1,189.7. The
Jimstan & Jimstan Corp. can sell a new 10-year bond with an annual coupon of 5.3% and a face value of $1,000 for $1,189.7. The company will incur flotation costs of $40 per bond and has a tax rate of 30%. What are the net proceeds from selling the bond?
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