Answered: A P1,000,000 issue of 3%, 15-year bond…

A P1,000,000 issue of 3%, 15-year bond was sold at 95%. What is the rate of interest of this investment? Select the correct response: 4.0% 3.7% 3.0%

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 2PB: Charleston Inc. issued $200,000 bonds with a stated rate of 10%. The bonds had a 10-year maturity...

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A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

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AP1,000,000 issue of 3%, 15-year bond was sold at 95%. What is the rate of interest of this investment?
Select the correct response:
4.0%
3.7%
3.0%
3.4%

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