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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Question
7
Transcribed Image Text:On January 1, 20x1, ZEAL EAGERNESS Co. contemplates on issuing 10% serial bonds with face
amount of P12,000,000. The bonds will mature in three equal annual installments. Interest on the
outstanding principal balance is also due annually at each year-end. The effective interest rate is
12%. How much is the estimated issue price of the bonds on January 1, 20x17
a. 11,601,221
b. 9,645,328
c. 10,314,374
d. 8,745,328
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