Rite Aid discovers that it could refinance its 6.875% bonds by issuing 5.9%, 20 year bonds that pay interest semiannually The existing bonds (the 6.875% bonds) are callable at 102. The new bonds will be issued on the date that the interest payment occurs in December (assume that date is December 1st). The investment bankers believe that, unless the market changes drastically, the bonds will sell for approximately .025 less than the stated interest rate. As a fee for arranging this bond issue, the investment bankers will charge 2.76% of the maturity amount of the debt. Compute the following:

The net amount of cash Rite Aid will receive from the bond issue, net of the flotation costs