On January 1, 2014, Buknoy Company purchased serial bonds with face value of P3,000,000 and stated 12% interest payable annually every December 31. The bonds are to be held as financial asset at amortized cost with a 10% yield rate. The bonds mature at an annual installment of P1,000,000 every December 31. What is the present value of the serial bonds on January 1, 2014? (Round off the PV factor to two decimal places only) a. P3,106,800 b. P3,060,000 c. P3,045,000 d. P3,149,400
On January 1, 2014, Buknoy Company purchased serial bonds with face value of P3,000,000 and stated 12% interest payable annually every December 31. The bonds are to be held as financial asset at amortized cost with a 10% yield rate. The bonds mature at an annual installment of P1,000,000 every December 31. What is the present value of the serial bonds on January 1, 2014? (Round off the PV factor to two decimal places only) a. P3,106,800 b. P3,060,000 c. P3,045,000 d. P3,149,400
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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On January 1, 2014, Buknoy Company purchased serial bonds with face value of P3,000,000 and stated 12% interest payable annually every December 31. The bonds are to be held as financial asset at amortized cost with a 10% yield rate. The bonds mature at an annual installment of P1,000,000 every December 31. What is the present value of the
serial bonds on January 1, 2014? (Round off the PV factor to two decimal places only)
a. P3,106,800
b. P3,060,000
c. P3,045,000
d. P3,149,400
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