On January 1, 2016, Blue Company issued ten-year bonds with a face value of P 1,000,000 and a stated interest rate of 8% per year payable semi-annually every July 1 and January 1. The bonds were sold to yield 10%. Present value factors are as follows: Answer this with solution pls

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter5: The Cost Of Money (interest Rates)
Section: Chapter Questions
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On January 1, 2016, Blue Company issued ten-year bonds with a face value of P 1,000,000 and a stated interest rate of 8% per year payable semi-annually every July 1 and January 1. The bonds were sold to yield 10%. Present value factors are as follows: Answer this with solution pls
PV of 1 for 10 periods at 10%
PV of 1 for 20 periods at 5%
PV of an annuity of 1 for 10 periods at 10%
PV of an annuity of 1 for 20 periods at 5%
.386
377
6.145
12.462
The total issue price of the bonds is-
Transcribed Image Text:PV of 1 for 10 periods at 10% PV of 1 for 20 periods at 5% PV of an annuity of 1 for 10 periods at 10% PV of an annuity of 1 for 20 periods at 5% .386 377 6.145 12.462 The total issue price of the bonds is-
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