If $1,000,000 of 8% Bonds Are Issued at 103 1/2

question 181

Multiple Choice

If $1,000,000 of 8% bonds are issued at 103 1/2, the amount of cash received from the sale is

• A) $1,080,000
• B) $965,000
• C) $1,000,000
• D) $1,035,000

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Definitions:

Crowdfunding

Gathering small sums of money from many people to finance a project or endeavor, commonly done online.

Bootstrapping

A method where entrepreneurs start their company with minimal capital, relying on personal finances and revenue from the business rather than seeking external investment.

Formal Fundraising

involves organized efforts to gather financial contributions from individuals, organizations, or governments, typically for nonprofit organizations or specific causes.

Crowdsourcing

A technique of acquiring knowledge, thoughts, or content by appealing for contributions from an extensive group of individuals, often through the internet community.