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Question 5: Your firm is issuing $102 million in straight bonds at par with a coupon rate of 6.1% and paying total fees of 2.5%.
Question 5: Your firm is issuing $102 million in straight bonds at par with a coupon rate of 6.1% and paying total fees of 2.5%. What is the net amount of funds that the debt issue will provide for your firm? Total proceeds from the issuance are SL (Round to the nearest dollar.) Question 6: Which of the following is NOT likely to be a bond covenant? (Choose the correct response.) A. New debt must be subordinate to existing debt. B.A maximum amount of assets can be sold, and/or a minimum amount of assets must be maintained. C. Dividend payouts can be made only from earnings generated after the bond issue. D. Mergers are allowed only if the combined firm has a maximum ratio of net tangible assets to debt
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