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

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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