If $500,000 of 8% bonds are issued at 102, the amount of cash received from the sale is:

Question

Mathematics

Messiah

26 December, 03:57

If $500,000 of 8% bonds are issued at 102, the amount of cash received from the sale is:

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Answers (1)

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Libby Bass · Answer 1

The amount is $510,000

Step-by-step explanation:

Amount of cash received from the sale of bonds is the product of the Face value of bond and the Bond quote divided by 100.

Face Value = $500,000

Bond Quote = 102

Amount = $500,000 * 102/100

= $510,000