Your firm is issuing 

​$104104 

million in straight bonds at par with a coupon rate of 

5.9 %5.9% 

and paying total fees of 

2.9 %2.9%. 

What is the net amount of funds that the debt issue will provide for your​ firm?

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Part 1

Total proceeds from the issuance are 

​$enter your response here. 

 ​(Round to the nearest​ dollar.)

To calculate the **net amount of funds** the debt issue will provide for your firm, we need to determine the total proceeds from the bond issuance, considering the fees.

Here's the step-by-step calculation:

1. **Total proceeds before fees**: This is the par value of the bonds issued, which is $104,104,000.
   
2. **Total fees**: The fees amount to 2.9% of the total proceeds.
   \[
   \text{Fees} = 104,104,000 \times 0.029 = 3,018,016
   \]
   
3. **Net proceeds**: Subtract the fees from the total proceeds to get the net amount of funds the debt issue will provide.
   \[
   \text{Net proceeds} = 104,104,000 - 3,018,016 = 101,085,984
   \]

Therefore, the **net amount of funds** your firm will receive is **$101,085,984**.

Would you like further details or explanations?

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### Related questions:
1. How is the coupon payment for bonds calculated?
2. What is the significance of issuing bonds at par?
3. How do bond fees typically impact overall financing costs?
4. What is the difference between coupon rate and yield to maturity?
5. Can fees be deducted differently depending on the bond issuance structure?

### Tip: Always factor in fees and costs when calculating proceeds from financial transactions to avoid overestimating available funds.

Your firm is issuing $104.104 million in straight bonds at par with a coupon rate of 5.9% and paying total fees of 2.9%. What is the net amount of funds that the debt issue will provide for your firm?

This detailed solution walks through how to calculate the net amount of funds from a bond issuance. Issuing $104.104 million in bonds with a coupon rate of 5.9% and 2.9% in fees yields net proceeds of $101,085,984. Learn the step-by-step process using percentage and subtraction calculations, ideal for finance students.

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