. On April 30, 2020, ABC acquired ar hvestment in bonds which has a face alue of P5,000,000 and pays 9% hterest due every April 30 and Oct. O until Oct. 30, 2024. It paid 4,822,305 inclusive of transaction ees of P11,804. The resulting ffective interest rate on this ransaction is 10%. It accounted the nvestment as a financial asset at mortized cost.
. On April 30, 2020, ABC acquired ar hvestment in bonds which has a face alue of P5,000,000 and pays 9% hterest due every April 30 and Oct. O until Oct. 30, 2024. It paid 4,822,305 inclusive of transaction ees of P11,804. The resulting ffective interest rate on this ransaction is 10%. It accounted the nvestment as a financial asset at mortized cost.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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2. On April 30, 2020, ABC acquired an
investment in bonds which has a face
value of P5,000,000 and pays 9%
interest due every April 30 and Oct.
30 until Oct. 30, 2024. It paid
P4,822,305 inclusive of transaction
fees of P11,804. The resulting
effective interest rate on this
transaction is 10%. It accounted the
investment as a financial asset at
amortized cost.
If on Nov. 30, 2021, ABC sold
1 point
the investment, what is the
interest income for that year?
Your answer
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Transcribed Image Text:4G
15.1
2:37 PM
64
KB/s
docs.google.com/form
(7
Not 2213218@S]u.edu.ph? Switch
account
2. On April 30, 2020, ABC acquired an
investment in bonds which has a face
value of P5,000,000 and pays 9%
interest due every April 30 and Oct.
30 until Oct. 30, 2024. It paid
P4,822,305 inclusive of transaction
fees of P11,804. The resulting
effective interest rate on this
transaction is 10%. It accounted the
investment as a financial asset at
amortized cost.
If on Nov. 30, 2021, ABC sold
1 point
the investment, what is the
interest income for that year?
Your answer
Page 3 of 8
Вack
Next
Never submit passwords through Google Forms.
This form was created inside of Saint Louis University,
Inc.. Report Abuse
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