Accountancy, asked by mileva6310, 6 months ago

How to calculate underwriter commission

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Answered by Anonymous

Answer:

It is calculated as a discount from the price of the new issue. For example, an issuer may sell the underwriter a bond at $990 per bond. The underwriter will then place the issue at $1,000, allowing it to make a $10 profit. This profit is the underwriting fee.

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