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

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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Question

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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