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Modern Software is planning to raise $100 million through a new debt issue. Its investment bankers have proposed two alternatives: (i) a domestic issue yielding
- Modern Software is planning to raise $100 million through a new debt issue. Its investment bankers have proposed two alternatives: (i) a domestic issue yielding 5.00% and (ii) a Eurobond issue yielding 5.10%. The two debt issues have identical terms except for the interest rate. Which debt issue is cheaper? Justify your answer.
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Bond Markets Analysis And Strategies
Authors: Frank J. Fabozzi, Francesco A. Fabozzi
10th Edition
026204627X, 978-0253337535
