The net amount of funds that the debt issue

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A firm issues $225 million in straight bonds at an original issue discount of 2.0% and a coupon rate of 6%. The firm pays fees of 4% on the face value of the bonds. The net amount of funds that the debt issue will provide for the firm is ________.

A) $211.5 million

B) $222.075 million

C) $232.65 million

D) $200.925 million

Reference no: EM131346609

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