Tuck Co. plans on issuing three-year, 12% term bonds with face amount of P2,000,000. If the current rate on issuance day is 10%, the estimated issue price of the bonds would be a. 2,099,474 b. 2,123,649 c. 2,230,713

Tuck Co. plans on issuing three-year, 12% term bonds with face amount of P2,000,000. If the current rate on issuance day is 10%, the estimated issue price of the bonds would be a. 2,099,474 b. 2,123,649 c. 2,230,713

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EB: Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market...

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Question

Tuck Co. plans on issuing three-year, 12% term bonds with face amount of P2,000,000. If the current rate on issuance day is 10%, the estimated issue price of the bonds would be

a. 2,099,474

b. 2,123,649

c. 2,230,713

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