On September 1, 2018, Red Co., issued $48 million of its 10% bonds at face value. The bonds are dated June 1, 2018, and mature on May 30, 2028. Interest is payable semiannually on June 1 and December 1. At the time of issuance, Red would receive cash proceeds that would include accrued interest of:
A) Zero.
B) $600,000.
C) $1,200,000.
D) $4,800,000.
Correct Answer:
Verified
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