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?

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?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

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