Determine the buying price of the bond.

Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter10: Long-term Liabilities
Section: Chapter Questions
Problem 10.2E
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Problem 1. Mala Inse Corporation is contemplating to buy P2,000,000 par value bonds at an effective rate of
ten percent. P195,000 interest is receivable every end of six months for five years.
Determine the buying price of the bond.
Transcribed Image Text:Problem 1. Mala Inse Corporation is contemplating to buy P2,000,000 par value bonds at an effective rate of ten percent. P195,000 interest is receivable every end of six months for five years. Determine the buying price of the bond.
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