Alberta Energy Issues $85 Million in Straight Bonds at Par

question 88

Multiple Choice

Alberta Energy issues $85 million in straight bonds at par with a coupon rate of 6.5%.The firm also pays underwriting fees of 3.5% on the face value of the bonds.What are the net proceeds to Alberta Energy from the bond issue?

• A)$80 million
• B)$79.5 million
• C)$76.5 million
• D)$85 million
• E)$82 million

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Definitions:

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Recover Money

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