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:

Selling Shares

The act of disposing of ownership in a company by selling stock in exchange for cash or other compensation.

Subscription Price

The cost that investors pay to acquire securities during an offering before they are available on the open market.

Rights-On Period

A specific time frame during which shareholders have the right to buy additional shares at a predetermined price before the offer is open to others.

Common Share Price

The market price at which a company's common stock is traded on the stock exchange.