If $1,000,000 of 10% bonds are issued at 98 3/4,the amount of cash received from the sale is

Question

Quizplus · Accepted Answer

First, we need to convert 98 3/4 to a decimal:

98 3/4 = 98 + 75/100 + 1/4 = 98.75

Therefore, the bonds are issued at 98.75% of their face value.

To find the amount of cash received from the sale, we need to multiply the face value of the bonds ($1,000,000) by the percentage of face value received (98.75%):

$1,000,000 x 0.9875 = $987,500

Therefore, the answer is (C) $987,500.

If $1,000,000 of 10% Bonds Are Issued at 98 3/4,the