Contis Company issued bonds with face amount of P6,000,000 on January 1, 2021. The nominal rate of 6% is payable annually on December 31. The bonds are issued with an 8% effective yield. The bonds mature on every December 31 each year at the rate of P2,000,000 for the three years. Present value of 1 at 8%: One period 0.9259 Two periods 0.8573 Three periods 0.7938 Determine the market price or issue price of the bonds: Group of answer choices 5,788,532 4,762,800 5,690,555 5,960,555

Contis Company issued bonds with face amount of P6,000,000 on January 1, 2021. The nominal rate of 6% is payable annually on December 31. The bonds are issued with an 8% effective yield. The bonds mature on every December 31 each year at the rate of P2,000,000 for the three years. Present value of 1 at 8%: One period 0.9259 Two periods 0.8573 Three periods 0.7938 Determine the market price or issue price of the bonds: Group of answer choices 5,788,532 4,762,800 5,690,555 5,960,555

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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