Question
Soldman Gachs (SG) agrees to underwrite a $50,000,000 bond offering. The offer will be a firm commitment and terms are 10 year, 4% semiannual coupon.
Soldman Gachs (SG) agrees to underwrite a $50,000,000 bond offering. The offer will be a firm commitment and terms are 10 year, 4% semiannual coupon. On Wednesday, SG pays the issuer with the intention of selling the bonds to the public on Thursday. Overnight, interest rates decrease 30 basis points. What is the impact on the profits of SG?increase $1,235,009
increase $1,208,789
decrease $1,208,789
decrease $1,244,296
increase $1,244,296
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1st Edition
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