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A Company Issues at Par 9% Bonds with a Par

Question 120

Multiple Choice

A company issues at par 9% bonds with a par value of $100,000 on April 1,which is 4 months after the most recent interest date.The cash received for accrued interest on April 1 by the bond issuer is:


A) $ 750.
B) $5,250.
C) $1,500.
D) $3,000.
E) $6,000.

Correct Answer:

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