Ruth Lewis 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, 11-year, 13% unsecured bonds, interest payable quarterly. Bonds were priced to yield 10.00%. (b) $29 million par of 11-year, zero-coupon bonds at a price to yield 10.00% per year. (c) $15 million, 11-year, 8.00% mortgage bonds, interest payable annually to yield 10.00%. 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, eg. 58,971.) (1) Maturity value (3) Number of (2) interest periods Stated rate per period Unsecured Bonds 10000000 44 Zero-Coupon Bonds 29000000 11 0 Mortgage Bonds 15000000 11 13
Ruth Lewis 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, 11-year, 13% unsecured bonds, interest payable quarterly. Bonds were priced to yield 10.00%. (b) $29 million par of 11-year, zero-coupon bonds at a price to yield 10.00% per year. (c) $15 million, 11-year, 8.00% mortgage bonds, interest payable annually to yield 10.00%. 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, eg. 58,971.) (1) Maturity value (3) Number of (2) interest periods Stated rate per period Unsecured Bonds 10000000 44 Zero-Coupon Bonds 29000000 11 0 Mortgage Bonds 15000000 11 13
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Ruth Lewis 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)
(b)
(c)
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)
(2)
$10 million, 11-year, 13% unsecured bonds, interest payable quarterly. Bonds were priced to yield 10.00%
$29 million par of 11-year, zero-coupon bonds at a price to yield 10.00% per year.
$15 million, 11-year, 8.00% mortgage bonds, interest payable annually to yield 10.00%.
(3)
Maturity
value
Number of
interest
periods
Stated
rate per
period
Unsecured
Bonds
10000000
44
Zero-Coupon
Bonds
29000000
11
0
Mortgage
Bonds
15000000
11
8
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