If $1,000,000 of 8% bonds are issued at 105, the amount of cash received from the sale is
A) $1,080,000
B) $950,000
C) $1,000,000
D) $1,050,000

Question

Quizplus · Accepted Answer

The bonds were issued at 105, which means they were sold at 105% of their face value. 
The face value of the bonds is $1,000,000, so 105% of that is:
$1,000,000 x 1.05 = $1,050,000
Therefore, the amount of cash received from the sale is $1,050,000.

If $1,000,000 of 8% Bonds Are Issued at 105, the Amount