A company paid $37,800 plus a broker's fee of $525 to acquire 8% bonds with a $40,000 maturity value.The company intends to hold the bonds to maturity.The cash proceeds the company will receive upon the maturity of the bond is:
A)$37,800
B)$38,325
C)$40,000
D)$40,525
E)$43,200

Question

Quizplus · Accepted Answer

The cash proceeds at maturity will be the maturity value of the bonds, which is $40,000. The broker's fee and purchase price do not affect the maturity value.

A Company Paid $37,800 Plus a Broker's Fee of $525