Farmer Company issues $20,000,000 of 10-year, 9% bonds on March 1, 2012 at 97 plus accrued interest. The bonds are dated January 1, 2012, and pay interest on June 30 and December 31. What is the total cash received on the issue date?
a. $19,400,000
b. $20,450,000
c. $19,700,000
d. $19,100,000
Answer: c. $19,700,000
You might also like to view...
In the local paper, a car dealership advertises a small used car for a great price and a low interest rate loan. When Patrice comes in to look at that car, the salesman steers her away from the advertised car. Instead, the salesman tries to convince her to buy a different used car with a much higher interest rate loan. What unfair sales practice might this be an example of?
A. false advertising B. fraud C. warranty breach D. bait and switch
Beginning in 1938 and extending to the present, which is the correct sequence of accounting rule-making bodies?
A) APB-CAP-FASB B) CAP-FASB-APB C) CAP-APB-FASB D) FASB-APB-CAP
Matthew bought a used car last month for $2,400. He just found out he needs a new transmission that will cost $2,400 to install. He is asking you for advice as to what he should do. What financial principle would you use to base your advice on?
A) Waste not, want not, smart spending matters. B) Mind games, financial personality, and your money C) Protect yourself from major catastrophes. D) None of the above would be correct.
If a business is found to have records in such a mess that the other side of in a lawsuit cannot find documents it wants, the court may punish the messy party or even rule against it in the case
a. True b. False Indicate whether the statement is true or false