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

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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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