Suppose investment bank one decides to underwrite a million 6 year 5% semi annual bond issue for clothing company on a firm commitment basis. investment bank 1 pays clothing company 1 million today and they plan to issue the bonds tomorrow. If the interest rate is 15 basis points lower tomorrow, then how will this impact investment bank once profits?

Answer rating: 100% (QA)

Firm underwriting where an underwriter agrees to buy a certain number of sharesdebentures in addi... View the full answer