On January 1, 2016, Blue Company issued ten-year bonds with a face value of P 1,000,000 and a stated interest rate of 8% per year payable semi-annually every July 1 and January 1. The bonds were sold to yield 10%. Present value factors are as follows: Answer this with solution pls
On January 1, 2016, Blue Company issued ten-year bonds with a face value of P 1,000,000 and a stated interest rate of 8% per year payable semi-annually every July 1 and January 1. The bonds were sold to yield 10%. Present value factors are as follows: Answer this with solution pls
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On January 1, 2016, Blue Company issued ten-year bonds with a face value of P 1,000,000 and a stated interest rate of 8% per year payable semi-annually every July 1 and January 1. The bonds were sold to yield 10%. Present value factors are as follows:
Answer this with solution pls
![PV of 1 for 10 periods at 10%
PV of 1 for 20 periods at 5%
PV of an annuity of 1 for 10 periods at 10%
PV of an annuity of 1 for 20 periods at 5%
.386
377
6.145
12.462
The total issue price of the bonds is-](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5fb529dd-42a8-488a-9418-2925e41a4f8b%2F84578e54-f0da-4885-b32b-37c67c4df745%2F74h59cu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:PV of 1 for 10 periods at 10%
PV of 1 for 20 periods at 5%
PV of an annuity of 1 for 10 periods at 10%
PV of an annuity of 1 for 20 periods at 5%
.386
377
6.145
12.462
The total issue price of the bonds is-
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