A company issued $400,000,10-year,10 percent bonds at 104.What is the issue price of these bonds?

Name: A company issued $400,000,10-year,10 percent bonds at 104.What is the issue price of these bonds?
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Question

Quizplus · Accepted Answer

The issue price of the bonds can be calculated using the formula: 
Issue Price = Face Value of the Bonds * (100% + (Premium %))/100
= $400,000 * (100% + 4%)/100
= $400,000 * 1.04
= $416,000
Therefore, the correct choice is C.

A Company Issued $400,000,10-Year,10 Percent Bonds at 104