On April 1,2010,Jared Enterprises issues bonds dated January 1,2010,that have a $2,430,000 par value,mature in 20 years,and pay 7% interest semiannually on June 30 and December 31.The bonds are sold at par plus four months' accrued interest.What is the total amount of cash Jared Enterprises will collect on April 1,2010?
A)$2,600,100
B)$2,430,000
C)$2,486,700
D)$2,750,000
E)$2,515,050

Question

Quizplus · Accepted Answer

Interest for Jan. -Apr.: 2,430,000*.07*4/12 = $56,700
Par Value plus accrued interest: 2,430,000+56,700 = 2,486,700

On April 1,2010,Jared Enterprises Issues Bonds Dated January 1,2010,that Have