If debentures with a face value of $100 000 are sold at 88, the amount of cash proceeds is:
A)$88 000.
B)$100 000.
C)$108 800.
D)$99 912.

Question

Quizplus · Accepted Answer

The amount of cash proceeds is equal to the face value of the debentures multiplied by the selling price. In this case, the face value is $100,000 and the selling price is 88% of the face value, or $88,000. Therefore, the amount of cash proceeds is $88,000.

If Debentures with a Face Value of $100 000 Are