Question: Crosby, Inc., sells $ 1 , 0 0 0 , 0 0 0 general obligation bonds for 1 0 2 . The interest rate on

Crosby, Inc., sells $1,000,000 general obligation bonds for 102. The interest rate on the bonds, paid quarterly, is 5 percent.
a. Calculate the amount that the company will actually receive from the sale of the bonds.
b. Calculate the amount of both the quarterly and the total annual cash interest that the company will be required to pay.

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