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On January 1, 2014, Behold Company purchased P5,000,000 face amount bonds with stated 12% interest. The bonds mature in 10 31. The bonds are acquired to yield a 14% interest. The present value of an ordinary annuity of 1 for 10 periods is 5.605 at 12% and 5.216 at 14%. What is the market price of the bonds? years and pay interest annually every December a. 4,478,400 b. 5,521,600 c. 4,439,500. d. 5,560,500

On January 1, 2014, Behold Company purchased P5,000,000 face amount bonds with stated 12% interest. The bonds mature in 10 31. The bonds are acquired to yield a 14% interest. The present value of an ordinary annuity of 1 for 10 periods is 5.605 at 12% and 5.216 at 14%. What is the market price of the bonds? years and pay interest annually every December a. 4,478,400 b. 5,521,600 c. 4,439,500. d. 5,560,500

FINANCIAL ACCOUNTING
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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Problem 24-32 (ACP) On January 1, 2014, Behold Company purchased P5,000,000 face amount bonds with stated 12% interest. The bonds mature in 10 years and pay interest annually every December 31. The bonds are acquired to yield a 14% interest. The present value of an ordinary annuity of 1 for 10 periods is 5.605 at 12% and 5.216 at 14%. What is the market price of the bonds? a. 4,478,400 b. 5,521,600 c. 4,439,500 . d. 5,560,500 Scanned with CamScanner
Transcribed Image Text:Problem 24-32 (ACP) On January 1, 2014, Behold Company purchased P5,000,000 face amount bonds with stated 12% interest. The bonds mature in 10 years and pay interest annually every December 31. The bonds are acquired to yield a 14% interest. The present value of an ordinary annuity of 1 for 10 periods is 5.605 at 12% and 5.216 at 14%. What is the market price of the bonds? a. 4,478,400 b. 5,521,600 c. 4,439,500 . d. 5,560,500 Scanned with CamScanner
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