TMC issued $50 million of its 12% bonds on April 1,2016,at 98 plus accrued interest.The bonds are dated January 1,2016,and mature on December 31,2035.Interest is payable semiannually on June 30 and December 31.What amount did TMC receive from the bond issuance?

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The bonds were issued at 98, which means that TMC received 98% of the face value of the bonds. The face value of the bonds is $50 million, so TMC received 98% of $50 million, which is $49 million. In addition, TMC received accrued interest from January 1, 2016, to April 1, 2016. The accrued interest is calculated as follows:Accrued interest = Face value of bonds x Coupon rate x TimeAccrued interest = $50,000,000 x 12% x 3/12Accrued interest = $1,500,000Therefore, TMC received a total of $49 million + $1.5 million = $50.5 million from the bond issuance.

TMC Issued $50 Million of Its 12% Bonds on April