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At the beginning of current year, Saturn Company issued ten-year bonds with a face amount of P5,000,000 and a stated interest rate of 8% payable annually at every year-end. The
@ 8% @10%
PV of a single payment of 1 for 10 periods 0.4632 0.3855
PV of an ordinary annuity of 1 for 10 periods 6.7101 6.1446
What is the issue price of the bonds?
- 5,000,040 b. 2,316,000 c. 2,457,840 d. 4,385,340
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- On January 1, 2021, Relay Company issued a 3-year, 12% bonds with face value of P3,000,000. Interest is payable annually every December 31 of each year starting December 31, 2021. The effective rate of interest on January 1, 2021 is 18%. PV of P1 @ 18% for 3 periods. 0.6086 PV of an ordinary annuity of P1@ 18% for 3 periods... 2.1743 How much is the interest expense for the year 2021? O P512,658 O P469,539 O P360,000 O P489,256Subject :- Accounting On January 1, 2025, Oriole Co. issued ten-year bonds with a face amount of $5000000 and a stated interest rate of 7% payable annually on January 1. The bonds were priced to yield 10%. Cash received from the sale of the bonds was Present value factors are as follows: At 7% At 10% Present value of 1 for 10 periods 0.508 0.386 Present value of an ordinary annuity of 1 for 10 periods 7.024 6.145 Cash received from the sale of the bonds was $4080750. $4850000. $4650000. $5000000.Margaret Company provided the following information in relation to the issuance of bonds at the beginning of current year: Face amount P800,000 Term Ten years Stated interest rate 6% Interest payment date Annually on December 31 Yield 9% At 6% At 9% Present value of 1 for 10 periods 0.558 0.422 Future value of 1 for 10 periods 1.791 2.367 Present value of an ordinary annuity of 1 for 10 periods 7.360 6.418 What is the issue price for each P1,000 bond? 1,000 864 807 700