12%. The present value of 1 at 6% for 8 periodsis.63, and the 31. The prevailing market rate of interest on the bonds is is 10% payable semiannually every June 30 and December 2014 and mature on January 1, 2018. The interest on the bonds face amount of P2,000,000. The bonds are dated January 1. On January 1, 2014, Bulwark Company purchased bonds with value of an ordinary annuity of 1 at 6% for 8 periods present is 6.21. What is the present value of the bonds on acquisition date?
12%. The present value of 1 at 6% for 8 periodsis.63, and the 31. The prevailing market rate of interest on the bonds is is 10% payable semiannually every June 30 and December 2014 and mature on January 1, 2018. The interest on the bonds face amount of P2,000,000. The bonds are dated January 1. On January 1, 2014, Bulwark Company purchased bonds with value of an ordinary annuity of 1 at 6% for 8 periods present is 6.21. What is the present value of the bonds on acquisition date?
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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Transcribed Image Text:problem 24-33 (ACP)
present value of an ordinary annuity of 1 at 6% for 8 periods
On January l1, 2014, Bulwark Company purchased bonds with
31. The prevailing market rate of intercst on the bonds is
is 10% payable semiannually every June 30 and December
2014 and mature on January 1, 2018. The interest on the bonds
face amount of P2,000,000. The bonds are dated January 1.
re amount of P2,000,000. The bonds are dated January !.
2014 and mature on January 1, 2018. The interest on the bonds
is 10% payable semiannually every June 30 and December
21 The prevailing market rate of interest on the bonds 1s
12%. The present value of 1 at 6% for 8 periods is .63, and the
present value of an ordinary annuity of 1 at 6% for 8 periods
is 6.21. What is the present value of the bonds on acquisition
date?
a. 1,881,000
b. 1,888,000
c. 1,360,000
d. 1,480,000
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