On July 1, 2010, Spear Co.issued 1,000 of its 10%, $1,000 bonds at 99 plus accrued interest.The bonds are dated April 1, 2010 and mature on April 1, 2020.Interest is payable semiannually on April 1 and October 1.What amount did Spear receive from the bond issuance?

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Spear Co. issued the bonds at 99, meaning they were issued at 99% of their face value. The face value of the bonds is $1,000,000 (1,000 bonds x $1,000 each). Therefore, the issuance price is $990,000 (99% of $1,000,000). Additionally, since the bonds were issued on July 1, 2010, and the last interest payment date was April 1, 2010, accrued interest for three months (April, May, June) must be added. The semiannual interest is $50,000 (10% of $1,000,000 / 2), so three months of accrued interest is $25,000 ($50,000 / 2). Therefore, the total amount received is $1,015,000 ($990,000 + $25,000).