OldSchool Books bought $16 million of 10% bonds at face value on September 1, 2024. These bonds have a stated date of June 1, 2024 and are 10 year bonds that mature on May 30, 2034. The interest on these bonds is paid semiannually - June 1 and December 1.

When these bonds were issued, OldSchool Books would receive cash proceeds that would include accrued interest of:

Multiple Choice

-Zero.

-$200,000.

-$1.6 million.

-$400,000.