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BC Brewery issues $30 million in straight bonds at an original issue discount of 2% and a coupon rate of 6%. The firm also pays

BC Brewery issues $30 million in straight bonds at an original issue discount of 2% and a coupon rate of 6%. The firm also pays underwriting fees of 2.5% on the face value of the bonds. What are the net proceeds to BC Brewery from the bond issue?

	$30 million
	$26.85 million
	$28.65 million
	$29.25 million

$27.45 million

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