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Septer Corporation issued 2,000 of its $1,000, 8% ten-year bonds dated July 1, Year 1. On September 1, Year 1, at a time when the market paid 9% for bonds of similar risk. The bonds were quoted at 94 and pay interest quarterly on September 30th and December 31st. What were the total proceeds of the bond issue at the time of sale:

A. $2,000,000

B. $1,880,000

C. $1,906,667

D. $1,893,333

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9407417

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