Exercise 14-11
Sunland Inc. has issued three types of debt on January 1, 2020, the start of the company’s fiscal year.
(a) $11 million, 11-year, 15% 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, 11% 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. (Round stated and effective rate per period to 2 decimal places, e.g. 10.25%. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.)
Refer the below images for above mentioned questions in a detailed way of solution.
Exercise 14-11 Sunland Inc. has issued three types of debt on January 1, 2020, the start...
Exercise 14-11 Windsor Inc. has issued three types of debt on January 1, 2020, the start of the company's fiscal year. (a) $10 million, 12-year, 15% unsecured bonds, interest payable quarterly. Bonds were priced to yield 11%. b) $25 million par of 12-year, zero-coupon bonds at a price to yield 11% per year. (c) $16 million, 12-year, 10% mortgage bonds, interest payable annually to yield 11%. Prepare a schedule that identifies the following items for each bond: (1) maturity value,...
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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,...