Related data of John-j Company: Face amount P2,550,000 Nominal rate 12% Effective rate 14% Date of issue January 1, 2021 Annual payment every December 31 P850,000 (Principal and interest) Interest is payable annually December 31 The entity used 3 decimal places for the PVF. Bonds mature on January 1, 2023 Required: What is the present value of the bonds payable on January 1, 2021?
Related data of John-j Company:
Face amount P2,550,000
Nominal rate 12%
Effective rate 14%
Date of issue January 1, 2021
Annual payment every December 31 P850,000 (Principal and interest)
Interest is payable annually December 31
The entity used 3 decimal places for the PVF.
Bonds mature on January 1, 2023
Required:
- What is the present
value of the bonds payable on January 1, 2021?
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