If $2,000,000 of 10% bonds are issued at 95, the amount of cash received from the sale is
A) $2,200,000
B) $2,000,000
C) $2,100,000
D) $1,900,000

Name: If $2,000,000 of 10% bonds are issued at 95, the amount of cash received from the sale is A) $2,200,000 B) $2,000,000 C) $2,100,000 D) $1,900,000
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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 $2,000,000, which is $1,900,000.

If $2,000,000 of 10% Bonds Are Issued at 95, the Amount