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How much is the purchase price of the bonds on january

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Reference no: EM132756905

On January 1, 2018 Karen Company acquired a 4-year bond with a face value of Php 1,200,000 and a stated interest rate of 10% per year payable annually on December 31. The bonds were acquired to yield a 12% and is to be accounted as financial asset at amortized cost.

Required: Based on the above, answer the following:

Problem 1: How much is the purchase price of the bonds on January 1, 2018?

Problem 2: How much is the interest income for 2018?

Reference no: EM132756905

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