If $1,000,000 of 8% bonds are issued at 102 3/4, the amount of cash received from the sale is

A) $1,080,000
B) $972,500
C) $1,000,000
D) $1,027,500

Question

If $1,000,000 of 8% bonds are issued at 102 3/4, the amount of cash received from the sale isA)  $1,080,000B)  $972,500C)  $1,000,000D)  $1,027,500

blaise umuhuza · Accepted Answer

Final Answer : D, Explanation :  First, we need to convert 102 3/4 to a decimal.102 3/4 = 102.75Next, we calculate the amount of cash received:$1,000,000 x 1.0275 = $1,027,500So the answer is D, $1,027,500.

If $1,000,000 of 8% bonds are issued at 102 3/4, the amount of cash received from the sale is

A) $1,080,000
B) $972,500
C) $1,000,000
D) $1,027,500

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