On July 1, 2022, Sonia Company purchased five-year bonds with face amount of P8,000,000 and stated interest of 10% per year payable semiannually on June 30 and December 31. The bonds were acquired to yield 8%. Present value of an ordinary annuity of 1 for ten periods at 5% Present value of an ordinary annuity of 1 for ten periods at 4% Present value of 1 for ten periods at 4% What is the purchase price of the bonds? A. 7,382,400 B. 8,617,600 C. 8,648,800 7.72 8.11 0.6756 D. 7,351,200
On July 1, 2022, Sonia Company purchased five-year bonds with face amount of P8,000,000 and stated interest of 10% per year payable semiannually on June 30 and December 31. The bonds were acquired to yield 8%. Present value of an ordinary annuity of 1 for ten periods at 5% Present value of an ordinary annuity of 1 for ten periods at 4% Present value of 1 for ten periods at 4% What is the purchase price of the bonds? A. 7,382,400 B. 8,617,600 C. 8,648,800 7.72 8.11 0.6756 D. 7,351,200
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...
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