Whispering Inc. has issued three types of debt on January 1, 2020, the start of the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Whispering Inc. has issued three types of debt on January 1, 2020, the start of the company's fiscal year. (a) $11 million, 10-year, 15% unsecured bonds, interest payable quarterly. Bonds were priced to yield 11%. (b) $29 million par of 10-year, zero-coupon bonds at a price to yield 11% per year. (c) $18 million, 10-year, 10% mortgage bonds, interest payable annually to yield 11%. 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. (Round stated and effective rate per period to 2 decimal places, eg. 10.25%. Round present value factor calculations to 5 decimal places, eg. 1.25124 and the final answer to O decimal places e.g. 58,971.) Unsecured Zero-Coupon Mortgage Bonds Bonds Bonds Maturity (1) value Number of (2) interest periods Stated rate (3) % per period Effective (4) rate per % % % period Payment (5) amount per period Present (6) $ value %24 %24 %24 %24 %24 %24 %24 Whispering Inc. has issued three types of debt on January 1, 2020, the start of the company's fiscal year. (a) $11 million, 10-year, 15% unsecured bonds, interest payable quarterly. Bonds were priced to yield 11%. (b) $29 million par of 10-year, zero-coupon bonds at a price to yield 11% per year. (c) $18 million, 10-year, 10% mortgage bonds, interest payable annually to yield 11%. 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. (Round stated and effective rate per period to 2 decimal places, eg. 10.25%. Round present value factor calculations to 5 decimal places, eg. 1.25124 and the final answer to O decimal places e.g. 58,971.) Unsecured Zero-Coupon Mortgage Bonds Bonds Bonds Maturity (1) value Number of (2) interest periods Stated rate (3) % per period Effective (4) rate per % % % period Payment (5) amount per period Present (6) $ value %24 %24 %24 %24 %24 %24 %24
Expert Answer:
Answer rating: 100% (QA)
Stepbystep Step 1 of 1 Explanation 1 Maturity value is the fa... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
Posted Date:
Students also viewed these accounting questions
-
Brooks Inc. has issued three types of debt on January 1, 2014, the start of the companys fiscal year. (a) $5 million, 20-year, 8% secured subordinated bonds, interest payable annually. Bonds were...
-
Anaconda Inc. has issued three types of debt on January 1, 2014, the start of the company's fiscal year: 1. $10 million, 10-year, 13% unsecured bonds, with interest payable quarterly (the bonds were...
-
Pawnee Inc. has issued three types of debt on January 1, 2019, the start of the company's fiscal year. a. $10 million, 10-year, 13% unsecured bonds, interest payable quarterly. Bonds were priced to...
-
The following table includes transactions carried out by Ram Horn Corporation, as well as columns for each of the three categories found in the statement of cash flows: operating, financing, and...
-
Devise a product jingle memory test. Compile a list of brands that are or have been associated with memorable jingles, such as Chiquita Banana or Alka-Seltzer. Read this list to friends, and see how...
-
Take another look at the regression analysis of tar and nicotine content of the cigarettes in Exercise 43. Dependent variable is Nicotine R-squared = 92.4% VariableCoefficient Constant 0.154030 Tar...
-
What are the important goals and considerations of information security?
-
1. What breaches of fiduciary duty does the Adelphia case raise? 2. Why do you think the Rigas Family thought they could get away with using Adelphia as their own piggy bank? 3. What allowed the...
-
How does the Agile methodology accommodate evolving requirements and stakeholder feedback throughout the software development lifecycle, thereby enabling teams to embrace change as a competitive...
-
1. Is Rapailles code system a short-cut code to understanding the complexities in culture and a way to make market research easier? Or is it a superficial hoax sold by a charlatan? 2. As a manager,...
-
A company manufactures two kinds of ice-cream. The vanilla ice-cream sells for $2.50 each while the chocolate flavour ice-cream sells for $4.50 cents each. It costs the company 1 labour hour to make...
-
AMERCO, the holding company for U-Haul International, Inc., included the following note in its annual report for the fiscal year ended on March 31, 2021: Note 3. Accounting Policies Property, Plant...
-
Corrected Journal Entries, Corrected Inventory, Ledger Accounts, Income Statement, and Balance Sheet. The Ledger Accounts, Income Statement, and Balance Sheet tabs should be based on the Corrected...
-
initiate new wine bread. Amphlett and Ferris also decided that if their first store were successful, they would open addi- tional stores in Bellevue and Issaquah, Washington, and they would consider...
-
u jan Q.6 Consider the two-country (Canada and Germany) model of exchange rate determination discussed in class with short-run nominal rigidities and in which money market equilibrium holds every...
-
Task 2: Customer-Level Analysis Using the "clean" dataset generated in the last step of Task 1, calculate the following metrics for each individual customer, then report the average across all...
-
Conduct a 5-forces analysis for the supermarket and grocery in Australia Conduct a 5-forces analysis for the supermarket and grocery industry Bargaining power of suppliers Bargaining power of buyers...
-
A survey of 70 college freshmen asked whether students planned to take biology, chemistry, or physics during their first year. Use the diagram to answer each question. How many of the surveyed...
-
Presented below is information for Monaco Company. 1. Beginning-of-the-year Accounts Receivable balance was $56,000. 2. Net sales (all on account) for the year were $685,000. Monaco does not offer...
-
Presented below is information related to Bowman, Inc. Instructions Comment on the appropriateness of the accounting procedures followed by Bowman, Inc. (a) During the year, the company purchased...
-
Roth Inc. has a deferred tax liability of $68,000 at the beginning of 2015. At the end of 2015, it reports accounts receivable on the books at $90,000 and the tax basis at zero (its only temporary...
-
Define a closely held corporation.
-
Explain the role played by a board of directors of a corporation.
-
Explain the steps in forming a limited liability corporation.
Study smarter with the SolutionInn App