Kingbird Inc. has issued three types of debt on January 1, 2020,
the start of the company’s fiscal year:
1. | $11 million, 10-year, 12% unsecured bonds, with interest payable quarterly, priced to yield 11% | |
2. | $2.8 million par of 10-year, zero-coupon bonds at a price to yield 11% per year | |
3. | $14 million, 10-year, 9% mortgage bonds, with interest payable annually to yield 11% |
Prepare a schedule that identifies the following items for each
bond:
Unsecured Bonds |
Zero- Coupon Bonds |
Mortgage Bonds |
|||||||||
(a) | Maturity value | $ | $ | $ | |||||||
(b) | Number of interest periods over the life of the bond | ||||||||||
(c) | Stated rate for each interest period | % | % | % | |||||||
(d) | Effective interest rate for each interest period | % | % | % | |||||||
(e) | Payment amount per period | $ | $ | ||||||||
(f) | Present value of the bonds at the date of issue | $ | $ | $ |
Kingbird Inc. has issued three types of debt on January 1, 2020, the start of the...
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Exercise 14-2 Kingbird Inc, has issued three types of debt on January 1, 2020, the start of the company's fiscal year: 1. $8 million, 11-year, 15% unsecured bonds, with interest payable quarterly, priced to yield 13% 2. $2.5 million par of 12-year, zero-coupon bonds at a price to yield 13% per year 3. $17 million, 12-year, 12% mortgage bonds, with interest payable annually to yield 13% Prepare a schedule that identifies the following items for each bond: (For calculation purposes,...
Sunland Inc. has issued three types of debt on January 1, 2020,
the start of the company’s fiscal year.
(a)
$10 million, 12-year, 14% unsecured bonds, interest payable
quarterly. Bonds were priced to yield 10%.
(b)
$29 million par of 12-year, zero-coupon bonds at a price to
yield 10% per year.
(c)
$15 million, 12-year, 8% mortgage bonds, interest payable
annually to yield 10%.
Prepare a schedule that identifies the following items for each
bond: (1) maturity value, (2) number...