Question 1 (2 points) Alberta Energy issues $110 million in straight bonds at par with a coupon rate of 4%. The firm also pays underwriting fees of 6% on the face value of the bonds. What are the net proceeds to Alberta Energy from the bond issue? $103.4 million $104.0 million $106.0 million $105.6 million $110 million What is the yield to maturity on the following bond: $10,000 par value, semi-annual coupon of 5 percent, maturing in six years and currently trading for $10,785? 5.00 3.54 4.20 4.64 Previous Page Next Page Page 13 of 29 Question 14 (2 points) Given the following ATT Ltd. bond information: $1,000 par value, maturity Dec 22, 2023, semi-annual coupon 7.75 percent, price 105.50 and yield 7.4 percent. How much interest does it pay annually? $7.50 $77.50 $7.40 $74.00 Previous Page Next Page Page 14 of 29 Submit Quli 10 of 29 questions saved Question 15 (2 points) What must be the price of a $1000 bond with a 5.8% coupon rate, semi-annual coupons, and 30 years to maturity if yield to maturity is 7.5%? $114.22 $685.00 $798.23 $1005.26 $184.26 Previous Page Next Page Page 15 of 29 Trey purchases 300 shares of Turner stock for $50 per share. Trey pays $10,000 in cash and borrows $5,000 from his broker at 16 percent interest to complete the purchase. One year later, Trey sells the stock for $55 per share. Trey's return if the stock paid no dividends during the year is 10.0 percent 27.5 percent 17.5 percent 48.4 percent 7.0 percent Previous Page Next Page Page 25 of 29