Austin Corporation issues $6,000,000 of 10%, 10-year bonds, dated 31 December, Year 1. The bonds are issued on 30 April, Year 2, at 100 plus accrued interest. Interest on the bonds is payable semiannually each 30 June and 31 December.
-The total amount of cash received by Austin Corporation upon issuance of the bonds on 30 April, Year 2, is:
A) $6,000,000.
B) $6,200,000.
C) $6,150,000.
D) $6,300,000.

Question

Quizplus · Accepted Answer

The Answer of Austin Corporation issues $6,000,000 of 10%, 10-year bonds, dated 31 December, Year 1. The bonds are issued on 30 April, Year 2, at 100 plus accrued interest. Interest on the bonds is payable semiannually each 30 June and 31 December.
-The total amount of cash received by Austin Corporation upon issuance of the bonds on 30 April, Year 2, is:
A) $6,000,000.
B) $6,200,000.
C) $6,150,000.
D) $6,300,000.

Austin Corporation Issues $6,000,000 of 10%, 10-Year Bonds, Dated 31