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Determine the requirement for each of the following independent cases. Use a 10-column worksheet for the solution. (8 items x 5 points) Case 1: Eveready
Determine the requirement for each of the following independent cases. Use a 10-column worksheet for the solution. (8 items x 5 points) Case 1: Eveready Company Eveready Company issued P100,000 of 8% term bonds on January 1, 2X19, due on January 1, 2X24, with interest payable on July 1 and January 1. The company's investors are willing to accept the bond at an effective- interest rate of 6% 1. What is the present value of P100,000 bonds due in five (5) years at 6% interest payable semiannually? 2. What is the present value of P 4,000 interest payable? 3. What amount would the investors pay for that particular bond? 4. What is the premium/discount at the date of issuance? 5. Provide entry in the books of Eveready on January 1, 2X19
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