Exhibit 11.15 presents excerpts from the notes to the financial statements of Home Supply Company.
a. The amounts shown for Debentures, Notes, and the Medium-Term Notes appear as the same amounts on February 1, 2012 and 2013. What is the likely interpretation for the identical reported amounts at the beginning and end of the year?

b. The Senior Notes comprise two debt issues on February 1, 2012, and an additional two debt issues on February 1, 2013. Indicate the amounts in each of the following cells.

c. The amount on the balance sheet for Senior Notes on February 1, 2013, of $1,980 million slightly exceeds the total issue price of the four Senior Notes of $1,979 million (= $988 × $991). Why do the amounts differ and why is the difference so small?
d. Why are the interest rates on the convertible notes so much lower than those on Home Supply Company otherdebt?

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Excerpts from Notes to the Financial Statements of Home Supply Company EXHIBIT 11.15 NOTE 6-LONG-TERM DEBT: Interest Rates % Fiscal Year of Final Maturity February 2, 2013 February 3, 2012 Secured Debt 6.57 to 8.25 2028 $ 30 $ 38 Unsecured Debt Debentures. Notes.. 6.50 to 6.88 8.25 7.35 to 8.20 6.70 to 7.61 5.00 to 5.80 0.86 to 2.50 2029 2010 2023 2037 2036 2021 2030 693 498 27 267 1,980 518 400 4,413 693 498 27 267 988 596 424 3,531 32 Medium-Term Notes-Series B. Senior Notes Convertible Notes W. Capital Leases and Other. . .. Less Current Maturities... Long-Term Debt, Excluding Current Maturities $4,325 $3,499 Term to Maturity at Issue Date Coupon Interest Historical Market Interest Rate Issue Date October 2011 October 201:1 October 2012 October 2012 Face Value Issue Price Rate