3 years ago

If $2,000,000 of 10% bonds are issued at 97, the amount of cash received from the sale is

Business

1 answer:

atroni [7]3 years ago

8 0

The answer to your question is d.$1,940,000

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3 years ago

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Andreyy89

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Young should report proceeds from the sale of bonds as equal to $864,884

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The proceeds on the sale of bonds is equivalent to the present value of all the cash flows that are likely to accrue to an investor once the bond is bought. These cash-flows are the periodic coupon payments that are paid semi-annually and the par value of the bond that will be paid at the end of the 5 years.

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