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On April 1 Eagle Corp, purchased $ 8 0 , 0 0 0 of Bobcat inc's 1 2 % bonds at a purchase price of

On April 1 Eagle Corp, purchased $80,000 of Bobcat inc's 12% bonds at a purchase price of 94. Eagle Corp., whose year end is December 31, expects to hold the bonds until their maturity date 5 years from the date of purchase. Interest on the bonds will be paid every April 1 and October 1 until maturity. How much cash will Eagle Corp. receive and how much total interest revenue will Eagle Corp. report relative to the first October 1 interest payment, assuming the market rate of interest at the time the bonds are purchased is14%?O Cash $4,800; Interest Revenue $5,264O Cash $9.600; Interest Revenue $10,528O Cash $5,600; Interest Revenue $4,512 Cash $9,024; Interest Revenue $11,200 None of the above.

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