A company paid $47,500 plus a broker's fee of $400 to acquire 8% bonds with a $60,000 maturity value.The company intends to hold the bonds to maturity.The cash proceeds the company will receive upon maturity of the bonds is:
A)$60,000
B)$60,400
C)$47,900
D)$64,800
E)$52,300

Question

Quizplus · Accepted Answer

The cash proceeds the company will receive upon maturity of the bonds is the maturity value, which is $60,000. The purchase price and broker's fee do not affect the maturity value.

A Company Paid $47,500 Plus a Broker's Fee of $400