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Business, 20.12.2019 18:31 dbrwnn

The landers corporation needs to raise $1.80 million of debt on a 15-year issue. if it places the bonds privately, the interest rate will be 14 percent. twenty thousand dollars in out-of-pocket costs will be incurred. for a public issue, the interest rate will be 13 percent, and the underwriting spread will be 2 percent. there will be $100,000 in out-of-pocket costs. assume interest on the debt is paid semiannually, and the debt will be outstanding for the full 15-year period, at which time it will be repaid. use appendix b and appendix d for an approximate answer but calculate your final answer using the formula and financial calculator methods.

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The landers corporation needs to raise $1.80 million of debt on a 15-year issue. if it places the bo...
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