How much is the issue price of the bonds

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On January 1, 2020, the BTS Company purchased P800,000 of 6% term bonds. The bonds are dated January 1, 2020, and the interest is payable semiannually on June 30 and December 31. At the time the bonds were purchased the market interest rate was 8%. The bonds mature on December 31, 2024. BTS Company uses the effective interest method of amortization and classified as debt investment @ FVTOCI.

Problem 1: How much is the issue price of the bonds?

Problem 2: How much is the interest income in 2022?

Reference no: EM133001620

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