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
Correct Answer:
Verified
Correct Answer:
Verified
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