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    Euro-medium term note

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    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.

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    https://brainmass.com/business/discounted-cash-flows-model/euro-medium-term-note-determine-net-proceeds-firm-101881

    Solution Summary

    The solution calculates the net proceeds to the firm after issuing a Euro-medium term note.

    $2.19

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