What is the net cash receipts from the bond issuance

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Problem 1: On May 1, 2020 Red Company issued 2,000,000, 10 year, 9% bonds at 105 including accrued interest. These bonds are dated January 1, 2020. Interest is payable semi-annually on January 1 and July 1. Transaction cost of 10,000 were paid by Red. What is the net cash receipts from the bond issuance?

Reference no: EM132695712

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