If $1,000,000 of 10% Bonds Are Issued at 98, the Amount

question 9

Multiple Choice

If $1,000,000 of 10% bonds are issued at 98, the amount of cash received from the sale is:

• A) $980,000.
• B) $975,000.
• C) $987,500.
• D) $1,000,000.

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Definitions:

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Food, Conservation, and Energy Act

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Target Price

A pre-set price determined by a company or government at which a product, especially in agriculture, is aimed to be sold in the market.

Countercyclical Payment

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