1. On January 1, 2011, Taguig Company issued 3-year bonds with face value of P5,000,000 at 99. The nominal rate is 10% and the interest is payable annually on December 31. Additionally, Taguig Company paid bond issue cost of P150,000. What is the effective rate that should be used for these bonds? Round off present value factors to FOUR DECIMAL PLACES and the effective rate to two decimal places (e.g., 15.17%). *

1. On January 1, 2011, Taguig Company issued 3-year bonds with face value of P5,000,000 at 99. The nominal rate is 10% and the interest is payable annually on December 31. Additionally, Taguig Company paid bond issue cost of P150,000. What is the effective rate that should be used for these bonds? Round off present value factors to FOUR DECIMAL PLACES and the effective rate to two decimal places (e.g., 15.17%). *

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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Hw.5.
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am. 106.
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