Homework Answers
Face value of the bonds = $50,000,000
Issued at 96% of face value, which is $50,000,000 * 96% = $48,000,000
Accrued interest on the bonds for 3 months is $50,000,000 * 12% * 3/ 12 = $1,500,000
Total amount received from issuance of bond is $48,000,000 + $1,500,000 = $49,500,000
So, TMC receive from the bonds issue = $49,500,000 or $49.5 million
Answer is $49.5 million
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