If $1,012,000 of 12% bonds are issued at 102 1/2, the amount of cash received from the sale is a. $1,037,300 O b. $1,012,000 O c. $759,000 O d. $1,133,440

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter12: Capital Structure
Section: Chapter Questions
Problem 1PROB
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Interest Rate
Number of Periods
Factor
Present Value of the Face
Bonds Proceeds
Present Value of the Bond Face Amount
Transcribed Image Text:Interest Rate Number of Periods Factor Present Value of the Face Bonds Proceeds Present Value of the Bond Face Amount
If $1,012,000 of 12% bonds are issued at 102 1/2, the amount of cash received from the sale is
Oa. $1,037,300
O b. $1,012,000
O c. $759,000
O d. $1,133,440
Transcribed Image Text:If $1,012,000 of 12% bonds are issued at 102 1/2, the amount of cash received from the sale is Oa. $1,037,300 O b. $1,012,000 O c. $759,000 O d. $1,133,440
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