solution for question number 18

Haphazard Company is contemplating to on issuing a 12%, 3-year, P4,000,000 bonds. Principal is due at maturity but interest is due annually at each year-end. Haphazard determines that the current market rate on January 1, 2019 is 10%. Present value of 1 for 3 periods at 10% 0.7513148 Present value of annuity of 1 for 3 periods at 10% 2.4868519 QUESTIONS: 17) How much is the estimated issue price of the bonds assuming Haphazard issues bonds on January 1, 2019? A 4,198,948 B. 4,183,744 C. 4,303,920 D. 4,404,314 18) If Haphazard plans to issue the bonds on April 1, 2019. How much is the estimated total proceeds form the issuance of the bonds on April 1, 2019? A 4,198,948 B. 4,183,744 C. 4,303,920 D. 4,404,314