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11 November, 09:28

If $1,029,000 of 6% bonds are issued at 102 1/2, The amount of cash received from the sale is a.$1,090,740 b.$771,750 c.$1,054,725 d.$1,029,000

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  1. 11 November, 12:19
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    amount of cash receive by sale = $1054725

    Explanation:

    given data

    face value of the bond = $1,029,000

    bond quote = 102 1/2

    bond rate = 6 %

    solution

    we get here amount of cash receive by sale of the bond that is get here as

    amount of cash receive by sale = face value of the bond * bond quote ... 1

    put here value and we get

    amount of cash receive by sale = $1,029,000 * 102 1/2 %

    amount of cash receive by sale = $1,029,000 * 102.5%

    amount of cash receive by sale = $1054725
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