A Company Paid $37,800 Plus a Broker's Fee of $525

Multiple Choice

A company paid $37,800 plus a broker's fee of $525 to acquire 8% bonds with a $40,000 maturity value.The company intends to hold the bonds to maturity.The cash proceeds the company will receive upon the maturity of the bond is:

A) $37,800
B) $38,325
C) $40,000
D) $40,525
E) $43,200