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

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

Quizplus · Accepted Answer

When bonds are sold at par, the cash proceeds are equal to the face value of the bonds. Therefore, in this case, the amount of cash proceeds is $100,000.

If Bonds with a Face Value of $100,000 Are Sold