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-   -   Finance APY (https://www.askmehelpdesk.com/showthread.php?t=413094)

  • Nov 5, 2009, 03:08 PM
    lilliam67
    Finance APY
    Comparing borrowing costs) Stephens Security has two financing alternatives: (1) A publicly placed $50 million bond issue. Issuance costs are $1 million, the bond has a 9%
    Coupon paid semiannually, and the bond has a 20-year life. (2) A $50 million private placement
    With a large pension fund. Issuance costs are $500,000, the bond has a 9.25% annual
    Coupon, and the bond has a 20-year life. Which alternative has the lower cost (annual percentage
    Yield)?
  • Nov 5, 2009, 03:09 PM
    Curlyben
    Thank you for taking the time to copy your homework to AMHD.
    Please refer to this announcement: https://www.askmehelpdesk.com/financ...-b-u-font.html

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