A municipality is issuing 50,000 bonds at a public offerings price of $1,000. The manager of the underwriting syndicate receives $1.25 per bond. The total takedown is $8.75 per bond and the selling concession is $5.00 per bond.
What amount will the issuer receive?
a. $991.25 per bond for a total of $49,562,500
b. $990.00 per bond for a total of $49,500,000
c. $985.00 per bond for a total of $49,250,000
d. $1,000.00 per bond for a total of $50,000,000