On July 1 2014 Spear Co issued 2,000 of its 10%, $1,000 bonds at 99 plus accrued

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Question:

On July 1 2014 Spear Co issued 2,000 of its 10%, $1,000 bonds at 99 plus accrued interest. The bonds are dated April 1, 2014, and mature on April 1, 2024. Interest is payable semiannually on April 1 and October 1. What amount did Spear receive from the bond insurance?

Instructions - what is the correct answer to the following:

a. $2,030,000

b. $2,000,000

c. $1,980,000

d. $1,930,000