Provide this question solution general finance Eddie Corporation issues $1,500,000 of 8% bonds at 105. What is theamount of cash Eddie would receive from the sale?a. $1.425,000b. $1,080,000c. $1,575,000d. $1,000,000e. None of the above.

Step 1: Identify the face value of the bondsStep 2: Convert the issue price percentage to a…

Answered: Eddie Corporation issues $1,500,000 of…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Eddie Corporation issues $1,500,000 of 8% bonds at 105. What is the amount of cash Eddie would receive from the sale? a. $1.425,000 b. $1,080,000 c. $1,575,000 d. $1,000,000 e. None of the above.