What amount of proceeds did the company receive on the issue

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On January 1, 2019, Yen Company issued 4,000 of its 8%, P1,000 bonds when the prevailing rate of interest was 9%. The bonds are dated January 1, 2019, and mature on January 1, 2023. Interest is payable annually every December 31.

The following are the present value factors:

Present value of 1 for 4 periods at 9% 0.7084

Present value of annuity of 1 for 4 periods at 9% 3.2397

Question 1: What amount of proceeds did the company receive on the issue of debt instrument?

Reference no: EM132988242

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