If $3,000,000 of 10% bonds are issued at 95, the amount of cash received from the sale is
A) $3,300,000
B) $3,000,000
C) $3,150,000
D) $2,850,000

Name: If $3,000,000 of 10% bonds are issued at 95, the amount of cash received from the sale is A) $3,300,000 B) $3,000,000 C) $3,150,000 D) $2,850,000
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Question

Quizplus · Accepted Answer

When bonds are issued at 95, it means they are sold at 95% of their face value. Therefore, the cash received is 95% of $3,000,000, which is $2,850,000.

If $3,000,000 of 10% Bonds Are Issued at 95, the Amount