Red Deer Inc. has issued a Euro-medium term note on January 1, 2006 with coupon paid Feburary 1 and August 1. The principal is $1,000,000, the coupon rate is 4% and the note matures August 1, 2007. The yield to maturity on Red Deer Inc.'s other debt is 4.5%. Determine the net proceeds to the firm.© BrainMass Inc. brainmass.com October 1, 2020, 7:24 pm ad1c9bdddf
The solution calculates the net proceeds to the firm after issuing a Euro-medium term note.