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If $1,004,000 of 10% bonds are issued at 102 3/4, the amount of cash received from the sale is a.$1,004,000 b.$753,000 c.$1,104,400 d.$1,031,610

Respuesta :

Answer:

d.$1,031,610

Explanation:

Data provided in the question

Bond interest rate = 10%

Issued price = $102.75

Value of the bond = $1,004,000

So by considering the above information, the amount of cash received from the sale is

= Value of the bond × ( Issue price of bond ÷ Face Value of Bond)

= $1,004,000 × ($102.75 ÷ 100)

= $1,031,610

The bond interest rate is ignored in this question

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