To raise capital for an expansion project, Pegasus Motors Corporation issued P5000.00, 8% bonds. The bonds will mature in 15 years with interest paid every three months. If an investor purchased 12 certificates for P48, 000.00. Determine: a) the total quarterly receipts due; b) the current yield of the bond. (Ans. P1200.00; 10%)

To raise capital for an expansion project, Pegasus Motors Corporation issued P5000.00, 8% bonds. The bonds will mature in 15 years with interest paid every three months. If an investor purchased 12 certificates for P48, 000.00. Determine: a) the total quarterly receipts due; b) the current yield of the bond. (Ans. P1200.00; 10%)

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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