What is the percentage underwriting cost

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Reference no: EM132525014

Cranbourne Ltd is issuing 10,000 bonds, and its investment banker has guaranteed a price of $985 per bond. The investment banker sells the entire issue to investors for $10,150,000.

Question (i) What is the underwriting spread for this issue?

Question (ii) What is the percentage underwriting cost?

Question (iii) How much did Cranbourne raise?

Reference no: EM132525014

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