Question
Vino Company raised capital to build a new frillabator factory in Donut Plaines, Iowa, and issued $200,000,000 of 20-year, 5.0% notes on October 1, 2019.
Vino Company raised capital to build a new frillabator factory in Donut Plaines, Iowa, and issued $200,000,000 of 20-year, 5.0% notes on October 1, 2019. The entire issue sold out on opening day, even after the firm's financial advisors adjusted the note price because of favorable news about firm prospects. The notes were priced to yield 4.5% when held to maturity.
Lucy Lockett bought three notes at issue date. On April 2, 2022, she decided to sell one note to finance some purchases for her trousseau. If the market rate for notes of Vinos ilk was then 6.0%, how much cash would she receive before paying commission?
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