What the bonds were issued at a discount of

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Problem 1: Ray Corp. issued bonds with a face amount of $200,000. Each $1,000 bond contained detachable stock warrants for 100 shares of Ray's common stock. Total proceeds from the issue amounted to $240,000. The market value of the bonds without the warrants was $196,000. The bonds were issued at a discount of (rounding the allocation percentage to two decimal places):

a) $ 0
b) $ 800
c) $ 4000
d) $33,898

Reference no: EM132992471

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