Goldman Said to Make $1.5 Million Error on Ford Bond Issue

The wrong Treasury note was used as the benchmark for Ford's five-years.

Goldman Sachs Group Inc. mistakenly added about $1.5 million of interest costs to a Ford Motor Co. bond sale last week by using the wrong Treasury note as a benchmark for the security, according to two people with knowledge of the transaction.

As compensation, Ford was charged a lower underwriting fee for the offering of $1 billion of five-year, 2.875 percent notes from its finance unit, said one of the people, who asked not to be identified because the information is private. The automaker paid 0.1 percentage point less in fees than in two previous sales of similar-maturity debt, regulatory filings show.

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