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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

FINANCIAL ACCOUNTING
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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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
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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