If $500,000 of 8% bonds are issued at 102, the amount of cash received from the sale is

Solution:

Given,

Face value of the bond = $500000

Bond quote = 102

We know that in commercial math,

Amount of cash received from the sale of bonds = (face value × bond quote)/100

Substituting the values

= (500000 × 102)/100

By further calculation

= 5000 × 102

= $510000

Therefore, the amount of cash received = $510000

If $500,000 of 8% bonds are issued at 102, the amount of cash received from the sale is

Summary:

If $500,000 of 8% bonds are issued at 102, the amount of cash received from the sale is $510000.