1. On January 1, 2011, Taguig Company issued 3-year bonds with face value of P5,000,000 at 99. The nominal rate is 10% and the interest is payable annually on December 31. Additionally, Taguig Company paid bond issue cost of P150,000. What is the effective rate that should be used for these bonds? Round off present value factors to FOUR DECIMAL PLACES and the effective rate to two decimal places (e.g., 15.17%). *

1. On January 1, 2011, Taguig Company issued 3-year bonds with face value of P5,000,000 at 99. The nominal rate is 10% and the interest is payable annually on December 31. Additionally, Taguig Company paid bond issue cost of P150,000. What is the effective rate that should be used for these bonds? Round off present value factors to FOUR DECIMAL PLACES and the effective rate to two decimal places (e.g., 15.17%). *

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

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