On June 30,2011,Xanadu Corporation issued $200,000 of 10-year,8% bonds at 99.The bonds pay interest semi-annually on June 30 and December 31.How much cash did Xanadu receive when the bonds were issued?

Name: On June 30,2011,Xanadu Corporation issued $200,000 of 10-year,8% bonds at 99.The bonds pay interest semi-annually on June 30 and December 31.How much cash did Xanadu receive when the bonds were issued?
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Xanadu received 99% of $200,000, which is $198,000 ($200,000 x 0.99 = $198,000).

On June 30,2011,Xanadu Corporation Issued $200,000 of 10-Year,8% Bonds at 99.The