Underwriting cost on old issue PV of future writeoff of 30000 per year Take the difference between the unamortized old underwriting costs of 300000 and the PV of the future writeoff of 231600 Summarize the inflows and outflows to get the net present value Due to the positive net present value the old issue should be refunded

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4Underwriting cost on old issue Original amount Amount written off over 10 y... View the full answer