In: Finance
Oriole Inc. is issuing 10,000 bonds, and its investment banker has guaranteed a price of $972 per bond. If the investment banker sells the entire issue to investors for $10,018,000. (Round percentage underwriting cost to 2 decimal places, e.g. 17.54%.)
What is the underwriting spread for this issue?
What is the percentage underwriting cost?
How much will Oriole raise?