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    lia4671's Avatar
    lia4671 Posts: 1, Reputation: 1
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    #1

    May 22, 2010, 01:14 PM
    (Comparing borrowing costs) Stephens Security has two financing alternatives: (1) A p
    (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)?
    Curlyben's Avatar
    Curlyben Posts: 18,514, Reputation: 1860
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    #2

    May 22, 2010, 02:13 PM
    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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