If Bonds with a Face Value of $100,000 Are Sold

question 37

Multiple Choice

If bonds with a face value of $100,000 are sold at par,the amount of cash proceeds is:

• A) $108,800.
• B) $100,000.
• C) $88,000.
• D) $99,912.

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Definitions:

Ethical Investing

Ethical investing involves making investment decisions based on ethical principles, including environmental sustainability, social justice, and corporate governance.

Proprietorship

A business structure owned by a single individual who is responsible for its liabilities and entitled to its profits.

Taxed

The imposition of a financial charge or other levy upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Double Taxation

A taxation principle referring to income taxes that are paid twice on the same source of income, common in C-type corporations where income is taxed at both the corporate and shareholder levels.