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a company paid $43,800 to acquire 7% bonds with a $46,000 maturity value. the company intends to hold the bonds to maturity. the cash proceeds the company will receive when the bonds mature equal:

Sagot :

The cash proceeds the company will receive when the bonds mature equal $46866.

When bonds are redeemed at maturity, they are always redeemed at face value since by then any bond discount or the premium would have become zero, plus the last interest payment.

Cash proceeds = Maturity amount + interset

                        = $46,000 + ($46,000 x 7% x 1/2) assuming semi-annual interest payments

                        = $46,000 + $1,365 = $47,365

Cash proceeds = Maturity amount + interset

                        = $43,800 + ($43,800 x 7%) assuming annual interest payments

                        = $43800 + $3066 = $46866

Learn more about maturity value here:-https://brainly.com/question/9099365

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