If bonds with a face value of $205,000 are issued at par,the amount of cash proceeds is ________.
A)$204,895
B)$205,000
C)$215,250
D)$225,500

Name: If bonds with a face value of $205,000 are issued at par,the amount of cash proceeds is ________. A)$204,895 B)$205,000 C)$215,250 D)$225,500
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Question

Quizplus · Accepted Answer

When bonds are issued at par, it means the selling price (or cash proceeds) of the bonds is equal to their face value. Therefore, the cash proceeds in this case would be $205,000, making option B the correct choice.

If Bonds with a Face Value of $205,000 Are Issued