Question
On January 1, 2018, Instrument Company acquired 12% bonds in the face amount of P2,000,000. They mature on December 31,2021. The bonds were acquired to
On January 1, 2018, Instrument Company acquired 12% bonds in the face amount of P2,000,000. They mature on December 31,2021. The bonds were acquired to yield 10%. The bonds mature in 4 equal annual installments of P500,000 every December 31. Interest is payable every December 31.
What is the purchase price of the bonds? (round off your answer to the nearest peso)
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Managerial Accounting for Managers
Authors: Eric Noreen, Peter Brewer, Ray Garrison
2nd edition
978-0077403485, 77403487, 73527130, 978-0073527130
