Asked by Arcie Robyn on Jun 16, 2024
Verified
If $150000 face value bonds are issued at 103 the proceeds received will be $103000.
Face Value
the nominal value or original cost of a security as stated by the issuing authority, not necessarily its market value.
Proceeds
The total amount of money received from a sale or transaction.
- Grasp the principles of bond issuance, redemption, and the effects on company’s financial health and credit rating.
Verified Answer
NA
Norma AlmanasirJun 22, 2024
Final Answer :
False
Explanation :
If $150,000 face value bonds are issued at 103, the proceeds received will be $150,000 * 1.03 = $154,500.
Learning Objectives
- Grasp the principles of bond issuance, redemption, and the effects on company’s financial health and credit rating.
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