On January 1, 2021, Avocado Corporation issued 3,000 of its 8%, P1,000 face value bonds at 11% prevailing rate of interest. Interest is payable semiannually on July1 and January 1. The bonds mature on January 1, 2024. Avocado paid bond issue cost which was appropriately recorded as a deferred charge. The effective interest after the bond issue cost is 12%. How much is the bond issue cost?

a. P68,286 

b. P70,240 

c. P72,832 

d. P74,095

Answer rating: 100% (QA)

ans 70240 Price at 11 market rate is as under Semiannual ca... View the full answer