Mr. Estrada purchased 100 5% bonds from Lontok Finance Corporation. Each bond has a face value of P 3,000 and were purchased at P 2,500. The bonds mature in 10 years. a. How much will Mr. Estrada receive as his dividend for all the bonds if dividends are paid semi-annually? b. Compute for its maturity value. The maturity value is c. After the maturity date, how much is the total earnings of Mr. Estrada?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 9EA: On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The...
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Mr. Estrada purchased 100 5% bonds from Lontok Finance Corporation. Each bond has
a face value of P 3,000 and were purchased at P 2,500. The bonds mature in 10 years.
a. How much will Mr. Estrada receive as his dividend for all the bonds if dividends are
paid semi-annually?
b. Compute for its maturity value. The maturity valuei
c. After the maturity date, how much is the total earnings of Mr. Estrada?
Transcribed Image Text:Mr. Estrada purchased 100 5% bonds from Lontok Finance Corporation. Each bond has a face value of P 3,000 and were purchased at P 2,500. The bonds mature in 10 years. a. How much will Mr. Estrada receive as his dividend for all the bonds if dividends are paid semi-annually? b. Compute for its maturity value. The maturity valuei c. After the maturity date, how much is the total earnings of Mr. Estrada?
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