A company paid $37,800 to acquire 8% bonds with a $40,000 maturity value.The company intends to hold the bonds to maturity.The cash proceeds the company will receive when the bonds mature equal:

A) $37,800.
B) $38,325.
C) $40,000.
D) $40,525.
E) $43,200.

Question

lelandra borges · Accepted Answer

Final Answer : C, Explanation :  The company will receive the maturity value of the bonds, which is $40,000, when they mature.

A company paid $37,800 to acquire 8% bonds with a $40,000 maturity value.The company intends to hold the bonds to maturity.The cash proceeds the company will receive when the bonds mature equal:

A) $37,800.
B) $38,325.
C) $40,000.
D) $40,525.
E) $43,200.

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Related questions

A company paid $37,800 to acquire 8% bonds with a $40,000 maturity value.The company intends to hold the bonds to maturity.The cash proceeds the company will receive when the bonds mature equal:A) $37,800.B) $38,325.C) $40,000.D) $40,525.E) $43,200.

Definitions

Learning Objectives

Learning Objectives

Related questions

A company paid $37,800 to acquire 8% bonds with a $40,000 maturity value.The company intends to hold the bonds to maturity.The cash proceeds the company will receive when the bonds mature equal:

A) $37,800.
B) $38,325.
C) $40,000.
D) $40,525.
E) $43,200.