At the beginning of January 2021, Luminiscence Company purchased ten-year bonds with a face amoun of P5,000,000. The stated interest rate is 8% per year payable semiannually June 30 and December 31 The bonds were acquired to yield 10%. Present value of 1 for 10 periods at 10% Present value of 1 for 20 periods at 5% Present value of an annuity of 1 for 10 periods at 10% Present value of an annuity of 1 for 20 periods at 5% 0.386 0.377 6.145 12.462 What would be its purchase price2
At the beginning of January 2021, Luminiscence Company purchased ten-year bonds with a face amoun of P5,000,000. The stated interest rate is 8% per year payable semiannually June 30 and December 31 The bonds were acquired to yield 10%. Present value of 1 for 10 periods at 10% Present value of 1 for 20 periods at 5% Present value of an annuity of 1 for 10 periods at 10% Present value of an annuity of 1 for 20 periods at 5% 0.386 0.377 6.145 12.462 What would be its purchase price2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![At the beginning of January 2021, Luminiscence Company purchased ten-year bonds with a face amount
of P5,000,000. The stated interest rate is 8% per year payable semiannually June 30 and December 31.
The bonds were acquired to yield 10%.
Present value of 1 for 10 periods at 10%
Present value of 1 for 20 periods at 5%
Present value of an annuity of 1 for 10 periods at 10%
Present value of an annuity of 1 for 20 periods at 5%
0.386
0.377
6.145
12.462
What would be its purchase price?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F54d3d11f-ffd7-4248-8906-11afc6a11112%2F47972dcd-87af-4dcc-90f0-71eeca03a82c%2Fgypi42s_processed.png&w=3840&q=75)
Transcribed Image Text:At the beginning of January 2021, Luminiscence Company purchased ten-year bonds with a face amount
of P5,000,000. The stated interest rate is 8% per year payable semiannually June 30 and December 31.
The bonds were acquired to yield 10%.
Present value of 1 for 10 periods at 10%
Present value of 1 for 20 periods at 5%
Present value of an annuity of 1 for 10 periods at 10%
Present value of an annuity of 1 for 20 periods at 5%
0.386
0.377
6.145
12.462
What would be its purchase price?
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