If bonds with a face value of $200,000 are sold at 98, the amount of cash proceeds is:
A)$202,000.
B)$200,000.
C)$196,000.
D)$192,157.

Name: If bonds with a face value of $200,000 are sold at 98, the amount of cash proceeds is: A)$202,000. B)$200,000. C)$196,000. D)$192,157.
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Question

Quizplus · Accepted Answer

Bonds sold at 98 means they are sold at 98% of their face value. Therefore, the cash proceeds are 98% of $200,000, which is $196,000.

If Bonds with a Face Value of $200,000 Are Sold