Difference between the price that the bond is going

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A company wants to issue a SGD 100 million 10-year straight bond, with a coupon of 5.5% paid semi-annually. The market interest rate for companies of similar standing is currently trading at 7%. At which price is the bond going to be issued, and how much funds are the company actually going to collect?

This is my question. What is the difference between the price that the bond is going to be issued and how much funds the company is actually going to collect?

Reference no: EM131401584

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