E14-11 (LO1) (Information Related to Various Bond Issues) Karen Austin Inc. has issued three types of 2017, the start of the company's fiscal year. (a) $10 million, 10-year, 15% unsecured bonds, interest payable quarterly. Bonds were priced to yield 1 (b) $25 million par of 10-year, zero-coupon bonds at a price to yield 12% per year. (c) $20 million, 10-year, 10% mortgage bonds, interest payable annually to yield 12% Instructions Prepare a schedule that identifies the following items for each bond: (1) maturity value, (2) number of inte of bond, (3) stated rate per each interest period, (4) effective-interest rate per each interest period, (5) period, and (6) present value of bonds at date of issue. 50

E14-11 (LO1) (Information Related to Various Bond Issues) Karen Austin Inc. has issued three types of 2017, the start of the company's fiscal year. (a) $10 million, 10-year, 15% unsecured bonds, interest payable quarterly. Bonds were priced to yield 1 (b) $25 million par of 10-year, zero-coupon bonds at a price to yield 12% per year. (c) $20 million, 10-year, 10% mortgage bonds, interest payable annually to yield 12% Instructions Prepare a schedule that identifies the following items for each bond: (1) maturity value, (2) number of inte of bond, (3) stated rate per each interest period, (4) effective-interest rate per each interest period, (5) period, and (6) present value of bonds at date of issue. 50

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

E14-11 (LO1) (Information Related to Various Bond Issues) Karen Austin Inc. has issued three types of
2017, the start of the company's fiscal year.
(a) $10 million, 10-year, 15% unsecured bonds, interest payable quarterly. Bonds were priced to yield 1
(b) $25 million par of 10-year, zero-coupon bonds at a price to yield 12% per year.
(c) $20 million, 10-year, 10% mortgage bonds, interest payable annually to yield 12%
Instructions
Prepare a schedule that identifies the following items for each bond: (1) maturity value, (2) number of inte
of bond, (3) stated rate per each interest period, (4) effective-interest rate per each interest period, (5)
period, and (6) present value of bonds at date of issue.
50

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