TMC Issued $50 Million of Its 12% Bonds on April

question 19

Multiple Choice

TMC issued $50 million of its 12% bonds on April 1, 2009, at 98 plus accrued interest. The bonds are dated January 1, 2009, and mature on December 31, 2030. Interest is payable semiannually on June 30 and December 31. What amount did TMC receive from the bond issuance?

• A)$50.5 million
• B)$51.5 million
• C)$49.0 million
• D)$49.5 million $50 million .98 = $49 million
• 12% $50 million 3/12 = $1.5 million
• $49 million + 1.5 Million = $50.5 million

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