The following appeared in the October 15, 2018, issue of the Financial Smarts Journal: This announcement is

Question:

The following appeared in the October 15, 2018, issue of the Financial Smarts Journal:
This announcement is not an offer of securities for sale or an offer to buy securities.
New Issue October 15, 2018
$750,000,000
CRAFT FOODS, INC.
7.75% Due October 1, 2028
Price 99.57%
Plus accrued interest if any from date of issuance Copies of the prospectus and the related prospectus supplement may be obtained from such of the undersigned as may legally offer these securities under applicable securities laws.
Keegan Morgan & Co. Inc.
Coldwell Bros. & Co.
Robert Stacks & Co.
Sherwin-William & Co.
Required:
1. Explain what is being described by the announcement.
2. Can you think of a psychological reason for the securities to be priced as they are?
3. What are the accounting considerations for Craft Foods, Inc.? Describe how Craft recorded the sale.
Debentures
Debenture DefinitionDebentures are corporate loan instruments secured against the promise by the issuer to pay interest and principal. The holder of the debenture is promised to be paid a periodic interest and principal at the term. Companies who...