B$.$ Consider note $11,$ Indebtedness and Credit Agreement. How much total debt does Rite Aid have at February $27,2010?$ How much of this is due within the coming fiscal year? Reconcile the total debt reported in note $11$ with what Rite Aid reports on its balance sheet.

C$.$ Consider the $7\mathrm{.}5\%$ senior secured notes due March $2017.$

I. What is the face value $($i$.$e$.$ the principal$)$ of these notes? How do you know?

II$.$ Prepare the journal entry that Rite Aid must have made when these notes were issued.

III. Prepare the annual interest expense journal entry. Note that the interest paid on a note during the year equals the face value of the note times the stated rate $($i$.$e$.,$ coupon rate$)$ of the note.

IV$.$ Prepare the journal entry that Rite Aid will make when these notes mature in $2017.$

D$.$ Consider the $9\mathrm{.}375\%$ senior notes due December $2015.$ Assume that interest is paid annually.

I. What is the face value $($or principal$)$ of these notes? What is the carrying value $($net book value$)$ of these notes at February $27,2010?$ Why do the two values differ?

II$.$ How much interest did Rite Aid pay on these notes during the fiscal $2009?$

III. Determine the total amount of interest expense recorded by Rite Aid on these notes for the year ended February $27,2010.$ Note that there is a cash and a noncash portion to interest expense on these notes because they were issued at a discount. The noncash portion of interest expense is the amortization of the discount during the year $($that is$,$ the amount by which the discount decreased during the year$).$

IV$.$ Prepare the journal entry to record interest expense on these notes for fiscal $2009.$ Consider both the cash and discount $($noncash$)$ portions of the interest expense from part III above.

V$.$ Compute the total rate of interest recorded for fiscal $2009$ on these notes.