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Question 1 ism Check 15 pts On November 1, 2020, A Company issued its 9% callable bonds in the face amount of P2.5 M
Question 1 ism Check 15 pts On November 1, 2020, A Company issued its 9% callable bonds in the face amount of P2.5 M which matures on October 31, 2030. The market rate of the bonds is 12%. The interest payment date is on April 30 and October 31. A Company uses the effective interest of amortizing discount and premium. Use the table below to compute the present values: 12% 9% The present value of 1 0.3220 0.4224 5584 6% . 4.5% 0.6439 for 10 periods The present value of 1 0.1037 for 20 periods 0.1784 0.3118 0.4146 The present value of an ordinary annuity 5.650 6.4177 7.361 7.9127 for 10 periods The present value of an ordinary annuity 7.469 9.1286 11.4699 13.0079 for 20 periods Required: 1. Compute for the issue price of the bonds 2. Complete the amortization table below: Round-off your answer to whole numbers Premium or MacBook Ait 000 80 9 600 FA 0 F6 44 22 FO 44 510
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