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Posted on Oct 01, 2024

On January 1 , 2 0 2 4 , Brandon Electronics issued $ 8 5 million of 1 1 . 5 % bonds, dated January

On January

1, 2024,

Brandon Electronics issued $

85

million of

11.5 %

bonds, dated January

1 .

The market yield for bonds of maturity issued by similar firms in terms of riskiness is

12.25 % .

How can Brandon sell debt paying only

11.5 %

in a

12.25 %

market?

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