The following information pertains to Garden Corp.’s issuance of bonds on July 1, 1998: Face Amount ₱800,000 Terms 10 years Stated interest rate 6% Interest payment dates Annually on July 1 Yield 9% What should be the issue price for each P1,000 bond?

The following information pertains to Garden Corp.’s issuance of bonds on July 1, 1998: Face Amount ₱800,000 Terms 10 years Stated interest rate 6% Interest payment dates Annually on July 1 Yield 9% What should be the issue price for each P1,000 bond?

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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Question

The following information pertains to Garden Corp.’s issuance of bonds on July 1, 1998:

Face Amount	₱800,000
Terms	10 years
Stated interest rate	6%
Interest payment dates	Annually on July 1
Yield	9%

What should be the issue price for each P1,000 bond?

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