Pronghorn Inc. has issued three types of debt on January 1, 2020, the start of the company’s fiscal year.(a) $11 million, 12-year, 15% unsecured bonds, interest payable quarterly. Bonds were priced to yield 10%.(b) $26 million par of 12-year, zero-coupon bonds at a price to yield 10% per year.(c) $20 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 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.)(There is a picture bellow of what I have started but I am confused if it is right and how to continue) Pronghorn Inc. has issued three types of debt on January 1, 2020, the start of the company's fiscal year.(a)$11 million, 12-year, 15% unsecured bonds, interest payable quarterly. Bonds were priced to yield 10%.(b)$26 million par of 12-year, zero-coupon bonds at a price to yield 10% per year.(c)$20 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 of interest periods over life ofbond, (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.)UnsecuredZero-CouponMortgageBondsBondsBondsMaturity(1)1100000026000000$20000000valueNumber of(2)interest481212periodsStated rate(3)3.75%8.%per periodEffective rate(4)2.50%1010%per periodPayment(5)amount per4125001600000period(6)Present value$%24%24%24%24%24%24

Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…

Answered: Pronghorn Inc. has issued three types…

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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Pronghorn Inc. has issued three types of debt on January 1, 2020, the start of the company’s fiscal year.

(a)		$11 million, 12-year, 15% unsecured bonds, interest payable quarterly. Bonds were priced to yield 10%.
(b)		$26 million par of 12-year, zero-coupon bonds at a price to yield 10% per year.
(c)		$20 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 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.)

(There is a picture bellow of what I have started but I am confused if it is right and how to continue)

Pronghorn Inc. has issued three types of debt on January 1, 2020, the start of the company's fiscal year.
(a)
$11 million, 12-year, 15% unsecured bonds, interest payable quarterly. Bonds were priced to yield 10%.
(b)
$26 million par of 12-year, zero-coupon bonds at a price to yield 10% per year.
(c)
$20 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 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.)
Unsecured
Zero-Coupon
Mortgage
Bonds
Bonds
Bonds
Maturity
(1)
11000000
26000000
$
20000000
value
Number of
(2)
interest
48
12
12
periods
Stated rate
(3)
3.75
%
8.
%
per period
Effective rate
(4)
2.50
%
10
10
%
per period
Payment
(5)
amount per
412500
1600000
period
(6)
Present value
$
%24
%24
%24
%24
%24
%24

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