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1. On January 1, 2011, Boyle Company issued 9% bonds in the face amount of P5,000,000 which nature on Janaury 1, 2021. The bonds pay interest on an annual basis. Boyle received 4,411,076.80 upon issuance. What was the prevailing market rate when the bond was issued?

1. On January 1, 2011, Boyle Company issued 9% bonds in the face amount of P5,000,000 which nature on Janaury 1, 2021. The bonds pay interest on an annual basis. Boyle received 4,411,076.80 upon issuance. What was the prevailing market rate when the bond was issued?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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4. On January 1, 2011, Boyle Company issued 9% bonds in the face amount of P5,000,000 which mature on Janaury 1, 2021. The bonds pay interest on an annual basis. Boyle received P4,411,076.80 upon issuance. What was the prevailing market rate when the bond was issued?
Transcribed Image Text:4. On January 1, 2011, Boyle Company issued 9% bonds in the face amount of P5,000,000 which mature on Janaury 1, 2021. The bonds pay interest on an annual basis. Boyle received P4,411,076.80 upon issuance. What was the prevailing market rate when the bond was issued?
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