If $1,000,000 of 8% bonds are issued at 102 3/4, the amount of cash received from the sale is
A) $1,080,000
B) $972,500
C) $1,000,000
D) $1,027,500

Name: If $1,000,000 of 8% bonds are issued at 102 3/4, the amount of cash received from the sale is A) $1,080,000 B) $972,500 C) $1,000,000 D) $1,027,500
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Question

Quizplus · Accepted Answer

First, we need to convert 102 3/4 to a decimal. 
102 3/4 = 102.75 
Next, we calculate the amount of cash received: 
$1,000,000 x 1.0275 = $1,027,500 
So the answer is D, $1,027,500.

If $1,000,000 of 8% Bonds Are Issued at 102 3/4