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Mariulka [41]
2 years ago
11

When the interest payment dates of a bond are may 1 and november 1, and a bond issue is sold on june 1, the amount of cash recei

ved by the issuer will be:________
Business
1 answer:
Free_Kalibri [48]2 years ago
8 0

When the interest payment dates of a bond are may 1 and november 1, and a bond issue is sold on june 1, the amount of cash received by the issuer will be " increased by accrued interest from May 1 to June 1."

<h3>What are bonds?</h3>

A bond is a kind of debt commitment instrument in which an investor loaned money to a company for a set period of time at a predefined interest rate.

  • Bonds are typically used to fund large-scale projects that require a large sum of money.
  • Corporations issue bonds on occasion during paying interest periods.
  • In this case, the bond issue price includes the accumulated interest from last interest payable date to a bond purchase date.
  • The increase in the issuer's return is the same as the interest earned through May 1 and June 1.

As a result, the amount of cash obtained by the issuer from May 1 to June 1 would be increased by accrued interest.

To know more about the bonds, here

brainly.com/question/25965295

#SPJ4

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