On January 1, 2022, Patrick Company purchased serial bonds with face amount of P3,000,000 and stated 12% interest payable annually every December 31. The bonds are to be held to maturity with a 10% effective yield. The bonds mature at an annual installment of P1,000,000 every December 31. Present value of 1 at 10% for one period Present value of 1 at 10% for two periods Present value of 1 at 10% for three periods What is the purchase price of the serial bonds? 0.91 0.83 0.75 A. 3,106,800 B. 3,060,000 C. 3,045,000 2 140 400

On January 1, 2022, Patrick Company purchased serial bonds with face amount of P3,000,000 and stated 12% interest payable annually every December 31. The bonds are to be held to maturity with a 10% effective yield. The bonds mature at an annual installment of P1,000,000 every December 31. Present value of 1 at 10% for one period Present value of 1 at 10% for two periods Present value of 1 at 10% for three periods What is the purchase price of the serial bonds? 0.91 0.83 0.75 A. 3,106,800 B. 3,060,000 C. 3,045,000 2 140 400

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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