5. On January 1, 2023, Crown Asia Company purchased bonds with face amount of P5,000,000 The bonds are dated January 1, 2023 and mature on January 1, 2027. The interest on the bonds is 10% payable semi- annually June 30 and December 31. The bond effective interest rate is 8%. What is the present value of the bonds on acquisition date? (Round the present value factor to four decimal places) a. 4,676,640 b. 5,067,175 C. 5,250,000 d. 5,336,675
5. On January 1, 2023, Crown Asia Company purchased bonds with face amount of P5,000,000 The bonds are dated January 1, 2023 and mature on January 1, 2027. The interest on the bonds is 10% payable semi- annually June 30 and December 31. The bond effective interest rate is 8%. What is the present value of the bonds on acquisition date? (Round the present value factor to four decimal places) a. 4,676,640 b. 5,067,175 C. 5,250,000 d. 5,336,675
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
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Transcribed Image Text:5. On January 1, 2023, Crown Asia Company purchased bonds with face amount of P5,000,000 The bonds
are dated January 1, 2023 and mature on January 1, 2027. The interest on the bonds is 10% payable semi-
annually June 30 and December 31. The bond effective interest rate is 8%. What is the present value of
the bonds on acquisition date? (Round the present value factor to four decimal places)
a.
4,676,640
b. 5,067,175
C. 5,250,000
d. 5,336,675
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