If a bond is issued at par between interest dates:
A)The cash received by the corporation will be less than the face value of the bond.
B)The cash received by the corporation will be greater than the face value of the bond.
C)The cash received by the corporation will be the same as the face value of the bond.
D)Interest receivable will be debited.

Question

Quizplus · Accepted Answer

When a bond is issued at par between interest dates, the corporation receives the face value of the bond plus accrued interest from the last interest payment date to the issuance date, resulting in cash received being greater than the face value.

If a Bond Is Issued at Par Between Interest Dates