A corporation issues 100 sinking fund bonds of P1,000 face value, redeemable at par in 15 years, with interest payable semi-annually at 4% per annum. The sinking fund earns interest at the rate of 3.5% compounded annually and the contribution to be made twice a year. Calculate the total periodic disbursement of the corporation for these bonds, exclusive of legal and administrative expenses. 4,563 2,000 4,664 2,563 3,685 2,664

A corporation issues 100 sinking fund bonds of P1,000 face value, redeemable at par in 15 years, with interest payable semi-annually at 4% per annum. The sinking fund earns interest at the rate of 3.5% compounded annually and the contribution to be made twice a year. Calculate the total periodic disbursement of the corporation for these bonds, exclusive of legal and administrative expenses. 4,563 2,000 4,664 2,563 3,685 2,664

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 5EB: Haiku Inc. issued $600,000 of 10-year bonds with a stated rate of 11% when the market rate was 12%....

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