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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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