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How much is Mystery Inc able to borrow

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Q1. Mystery, Inc. is contemplating selling bonds. The issue is to be composed of 800 bonds, each with a face amount of $750. How much is Mystery, Inc. able to borrow (in total) if each bond is sold at 95% of par?

a. $599,905

b. $630,000

c. $600,000

d. $570,000

Q2. Assuming each bond in Question 25 is sold at 95% of par, the bonds would be sold at:

a. a discount.

b. a premium.

c. face value.

d. par value.

Reference no: EM132617433

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