Question: Exercise 14-11 Your answer is partially correct. Try again. Skysong Inc. has issued three types of debt on January 1, 2020, the start of the
Exercise 14-11
| Your answer is partially correct. Try again. | |
Skysong Inc. has issued three types of debt on January 1, 2020, the start of the companys fiscal year.
| (a) | $10 million, 11-year, 14% unsecured bonds, interest payable quarterly. Bonds were priced to yield 12%. | |
| (b) | $28 million par of 11-year, zero-coupon bonds at a price to yield 12% per year. | |
| (c) | $17 million, 11-year, 10% mortgage bonds, interest payable annually to yield 12%. |
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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