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Eddie Industries issues $1,500,000 of bonds at 105. What is the amount of cash received from the sale?

User Lvarayut
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1 Answer

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Final answer:

Eddie Industries received $1,575,000 in cash from the sale of the bonds.

Step-by-step explanation:

When a company issues bonds, the cash received from the sale is equal to the face value of the bonds multiplied by the issue price. In this case, Eddie Industries issued $1,500,000 of bonds at 105, which means the issue price was 105% of the face value. To find the cash received, we need to calculate 105% of $1,500,000:

Cash received = Face value of bonds x (Issue price/100) = $1,500,000 x (105/100) = $1,575,000

So, Eddie Industries received $1,575,000 in cash from the sale of the bonds.

User Aravind Sivam
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