Práctica Series 7

A municipal syndicate reoffers a new issue at par. The spread is $15 per bond: a $2 management fee and a $13 total takedown, of which $8 is the concession. Dealer K, a syndicate member, sells 200 bonds to its own customers. Dealer M, a selling-group dealer outside the syndicate, sells 100 bonds. Ignoring any share of the residual, how much does each dealer earn from these sales?

• AK earns $1,600 and M earns $1,300.
• BK earns $3,000 and M earns $1,500.
• CK earns $2,600 and M earns $1,300.
• DK earns $2,600 and M earns $800.