Peng Corporation has been authorized to issue bonds with interest payment dates of March 1 and September 1.If the bonds are sold at face amount on April 1,the amount of cash to be received by the issuer is equal to the face amount of the bonds
A)minus the interest accrued from March 1 to April 1.
B)plus the interest accrued from April 1 to September 1.
C)minus the interest accrued from April 1 to September 1.
D)plus the interest accrued from March 1 to April 1.

Question

Quizplus · Accepted Answer

When bonds are sold between interest payment dates, the issuer receives the face amount plus any interest that has accrued from the last interest payment date (March 1) to the date of sale (April 1).

Peng Corporation Has Been Authorized to Issue Bonds with Interest