On January 1, 2021, Peru Company purchased P5,000,000 face amount, 17% bonds. The bonds were purchased to yield 16% interest. The bonds mature on January 1, 2026, and pay interest annually on December 31. The entity used 2 decimal places for the PVF. The fair value of the bonds on December 31, 2021, is P5,250,000. The fair value of the bonds on December 31, 2022, is P5,276,500. If measured at FVPL, how much is the interest income on December 31, 2021?
On January 1, 2021, Peru Company purchased P5,000,000 face amount, 17% bonds. The bonds were purchased to yield 16% interest. The bonds mature on January 1, 2026, and pay interest annually on December 31. The entity used 2 decimal places for the PVF. The fair value of the bonds on December 31, 2021, is P5,250,000. The fair value of the bonds on December 31, 2022, is P5,276,500. If measured at FVPL, how much is the interest income on December 31, 2021?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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On January 1, 2021, Peru Company purchased P5,000,000 face amount, 17% bonds.
The bonds were purchased to yield 16% interest.
The bonds mature on January 1, 2026, and pay interest annually on December 31.
The entity used 2 decimal places for the PVF.
The fair value of the bonds on December 31, 2021, is P5,250,000.
The fair value of the bonds on December 31, 2022, is P5,276,500.
If measured at FVPL, how much is the interest income on December 31, 2021?
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