Margaret Company Provided the ff information in relation to the issuance of bonds at the beginning of current year: Face Amount: 5,000,000 Term : 10 Years Nominal Rate: 6% Interest Payment Date : Annually on December 31 Effective Rate: 9% PV of 1 for 10 Periods at 9% = 0.422 PV of and Ordinary Annuity of 1 for 10 Periods = 6.418 What is the issue price of the bonds payable? PHP 5,000,000 PHP 4,318,000 PHP 4,035,400 PHP 2,110,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Margaret Company Provided the ff information in relation to the issuance of
bonds at the beginning of current year:
Face Amount: 5,000,000
Term : 10 Years
Nominal Rate: 6%
Interest Payment Date : Annually on December 31
Effective Rate: 9%
PV of 1 for 10 Periods at 9% = 0.422
PV of and Ordinary Annuity of 1 for 10 Periods = 6.418
What is the issue price of the bonds payable?
PHP 5,000,000
PHP 4,318,000
PHP 4,035,400
PHP 2,110,000
Transcribed Image Text:Margaret Company Provided the ff information in relation to the issuance of bonds at the beginning of current year: Face Amount: 5,000,000 Term : 10 Years Nominal Rate: 6% Interest Payment Date : Annually on December 31 Effective Rate: 9% PV of 1 for 10 Periods at 9% = 0.422 PV of and Ordinary Annuity of 1 for 10 Periods = 6.418 What is the issue price of the bonds payable? PHP 5,000,000 PHP 4,318,000 PHP 4,035,400 PHP 2,110,000
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