n January 1, 2023, Donya Cielo Company purchased a 6-year, P7,500,000 face value 6% debt instruments to yield 7% interest. Donya Cielo Company paid P125,520 transaction cost to purchase the bond. The debt instruments pay interest every December 31 of each year. On December 31, 2022, the fair value of the instruments is based on 5.5% effective interest. The investment was classified based on business model that has an objective of collecting contractual cash flows only. (Use 6-decimal places for PV factors). 39. What is the initial value of the debt investment when purchase on January 1, 2023? a. P7,044,537 b. P7,142,510 c. P7,268,030 d. P7,625,520