Elizabeth Brown Inc. has issued three types of debt on January 1, 2025, the start of the company's fiscal year. Click here to view factor tables. (a) $10 million, 10-year, 13% unsecured bonds, interest payable quarterly. Bonds were priced to yield 12.00%. (b) $27 million par of 10-year, zero-coupon bonds at a price to yield 12.00% per year. (c) $15 million, 10-year, 11.00% mortgage bonds, interest payable annually to yield 12.00%. 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 present value factor calculations to 5 decimal places, e.g. 1.25124. Round stated and effective rate per period to 2 decimal places, e.g. 10.25% and other answers to O decimal places, e.g. 58,971.) (1) (3) (4) (5) (6) Maturity value Number of interest periods Stated rate per period Effective rate per period Payment amount per period Present value $ 6/1 $ Unsecured Bonds || % % $ $ Zero-Coupon Bonds ]][[[[ % % 69 $ +A $ Mortgage Bonds |||||| % %

Elizabeth Brown Inc. has issued three types of debt on January 1, 2025, the start of the company's fiscal year. Click here to view factor tables. (a) $10 million, 10-year, 13% unsecured bonds, interest payable quarterly. Bonds were priced to yield 12.00%. (b) $27 million par of 10-year, zero-coupon bonds at a price to yield 12.00% per year. (c) $15 million, 10-year, 11.00% mortgage bonds, interest payable annually to yield 12.00%. 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 present value factor calculations to 5 decimal places, e.g. 1.25124. Round stated and effective rate per period to 2 decimal places, e.g. 10.25% and other answers to O decimal places, e.g. 58,971.) (1) (3) (4) (5) (6) Maturity value Number of interest periods Stated rate per period Effective rate per period Payment amount per period Present value $ 6/1 $ Unsecured Bonds || % % $ $ Zero-Coupon Bonds ]][[[[ % % 69 $ +A $ Mortgage Bonds |||||| % %

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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