Question

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

Answer 1

Answer:

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