Harpers Dog Pens, Inc., with the help of its investment bank recently issued $191.5 million of new

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Harper’s Dog Pens, Inc., with the help of its investment bank recently issued $191.5 million of new debt. The offer price on the debt was $1,000 per bond and the underwriter’s spread was 5 percent of the gross proceeds. Calculate the amount of capital funding Harper’s Dog Pens, Inc. raised through this bond issue.

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Finance Applications and Theory

ISBN: 978-0077861681

3rd edition

Authors: Marcia Cornett, Troy Adair

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