Ridge Company issues $10,000,000 10-year, 9% bonds on 3/1/17 at 97 plus accrued interest. The bonds are dated January 1, 2010, a

Question

3 years ago

12

nd pay interest on June 30 and December 31; original issue date was 1/1/17. What is the total cash received on 3/1/17

1 answer:

lilavasa [31] · Answer 1 · 2022-04-18T06:37:04+03:00

Answer:

$9,850,000

Explanation:

Calculation for What is the total cash received on 3/1/17

Total cash received on 3/1/17=$10,000,000 × .97) + ([9%*$10,000,000) × 2/12]

Total cash received on 3/1/17=$10,000,000 × .97) + ($900,000 × 2/12)

Total cash received on 3/1/17=$9,700,000+$150,000

Total cash received on 3/1/17 = $9,850,000

Therefore the total cash received on 3/1/17 is $9,850,000