Question
answer all questions for thumbs up 1. On December 31, 2020, Balbond issued 3,000 of its 5-year 6%, P1,000 face value bonds at par. Interest
answer all questions for thumbs up
1. On December 31, 2020, Balbond issued 3,000 of its 5-year 6%, P1,000 face value bonds at par. Interest is payable annually every January 1. What is the effective rate?
2. On January 1, 2020, Junibond issued 5-year 10%, P10,000,000 for P10,246,744. Interest and principal is payable in equal annual installments every January 1. The yield rate for similar bonds is 9%. What is the carrying value of the bonds as of December 31, 2021.
3. On January 1, 2020, Raybond issued its 10-year, 7% P1,000,000 convertible bonds at 122. Interest is payable annually every December 31, 2020. The bonds would have sold for P1,154,435 without the conversion feature. The effective interest rate of similar bonds without the conversion feature is 5%.
What is the accrued interest as of December 31, 2020?
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