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25. Mystery, Inc. is contemplating selling bonds. The issue is to be composed of 800 bonds, each with a face amount of $750. How much
25. 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
26. 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.
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