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

question 136

Multiple Choice

If bonds with a face value of $100,000 are sold at 102,the amount of cash proceeds is:

• A) $108,800.
• B) $100,000.
• C) $99,898.
• D) $102,000.

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Definitions:

Acceptance

The act of agreeing to the terms of an offer, thereby creating a binding contract.

Written Document

A physical or digital record that contains information or evidence in a format that can be read or understood.

Binding Contract

A legally enforceable agreement between two or more parties, where each is obligated to fulfill certain terms or face legal consequences.

Negotiations

The process of discussion aimed at reaching an agreement or compromise between two or more parties.