The sale and issuance of $800,000, 9% bonds with a market rate of 9% would involving debiting Cash for:

Name: The sale and issuance of $800,000, 9% bonds with a market rate of 9% would involving debiting Cash for:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When bonds are issued at their face value, the cash received is equal to the face value of the bonds. Since the market rate of interest (9%) matches the coupon rate (9%), the bonds are issued at par, meaning the cash debited is exactly $800,000, the face value of the bonds.

The Sale and Issuance of $800,000, 9% Bonds with a Market