On January 1, 2019,CalderetaCompany purchased 5-year bonds with face value of P8,000,000 and stated interest of 10% per year payable semi-annually January 1 and July 1.The bonds were acquired to yield 8%. Assuming that the bonds pay interest annually every December 31 (instead of semi-annually), all other data being the same, how much is the bond price?(Use 3-decimal places)

On January 1, 2019,CalderetaCompany purchased 5-year bonds with face value of P8,000,000 and stated interest of 10% per year payable semi-annually January 1 and July 1.The bonds were acquired to yield 8%. Assuming that the bonds pay interest annually every December 31 (instead of semi-annually), all other data being the same, how much is the bond price?(Use 3-decimal places)

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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On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%. Assuming the bonds were sold at 107.732, what is the selling price of the bonds? Were they issued at a discount or a premium?
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