Calculating costs of issuing debt

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Calculating Costs of Issuing Debt

Harper's Dog Pens, Inc. with the help of its investment bank, recently issued $199.7 million of new debt. The offer price on the debt was $1,000 per bond and the underwriter's spread was 5 percent of the gross proceeds.

Question 1: Calculate the amount of capital funding Harper's Dog Pens raised through this bond issue. (Enter your answer in dollars not in millions.)

Reference no: EM132496489

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