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Alberta Energy Issues $150 Million in Straight Bonds at Par

Question 95

Multiple Choice

Alberta Energy issues $150 million in straight bonds at par with a coupon rate of 6%.The firm also pays underwriting fees of 2% on the face value of the bonds.What are the net proceeds to Alberta Energy from the bond issue?


A) $141 million
B) $147 million
C) $150 million
D) $138 million
E) $144 million

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