Pawnee Inc. has issued three types of debt on January 1, 2012, the start of the companys

Question:

Pawnee Inc. has issued three types of debt on January 1, 2012, the start of the company’s fiscal year.

  (a) $10 million, 10-year, 13% unsecured bonds, interest payable quarterly. Bonds were priced to yield 12%.
  (b) $25 million par of 10-year, zero-coupon bonds at a price to yield 12% per year.
  (c) $15 million, 10-year, 10% mortgage bonds, interest payable annually to yield 12%.

Instructions

Prepare a schedule that identifies the following items for each bond: (1) maturity value, (2) number of interest periods over life of bond, (3) stated rate per each interest period, (4) effective-interest rate per     each interest period, (5) payment amount per period, and (6) present value of bonds at date of issue.

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Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-0470587287

14th Edition

Authors: kieso, weygandt and warfield.

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