Music City paid $37,800 plus a broker's fee of $525 to acquire 8% Airport Corp bonds with a $40,000 maturity value.Music City intends to hold the bonds to maturity.The proceeds Music City receives at maturity will be

Question

Quizplus · Accepted Answer

Since Music City intends to hold the bonds to maturity, they will receive the full maturity value of $40,000. The broker's fee is already included in the initial cost of $37,800, so it does not affect the final proceeds at maturity. Therefore, the correct answer is C) $40,000.

Music City Paid $37,800 Plus a Broker's Fee of $525