Sandra Robinson 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) $11 million, 10-year, 15% unsecured bonds, interest payable quarterly. Bonds were priced to yield 12.00%. (b) $28 million par of 10-year, zero-coupon bonds at a price to yield 12.00% per year. (c) $17 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.) Unsecured Bonds Zero-Coupon Bonds Mortgage Bonds 17000000 10 % 11.00 % (1) Maturity value 11000000 28000000 $ Number of (2) interest 40 10 periods Stated rate (3) 3.75 % per period Effective rate (4) 3.00 % 12.00 % per period Payment (5) amount per $ 412500 $ 0 period (6) Present value +A $ $ $ 12.00 % +A $ 1870000
Sandra Robinson 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) $11 million, 10-year, 15% unsecured bonds, interest payable quarterly. Bonds were priced to yield 12.00%. (b) $28 million par of 10-year, zero-coupon bonds at a price to yield 12.00% per year. (c) $17 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.) Unsecured Bonds Zero-Coupon Bonds Mortgage Bonds 17000000 10 % 11.00 % (1) Maturity value 11000000 28000000 $ Number of (2) interest 40 10 periods Stated rate (3) 3.75 % per period Effective rate (4) 3.00 % 12.00 % per period Payment (5) amount per $ 412500 $ 0 period (6) Present value +A $ $ $ 12.00 % +A $ 1870000
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 4EB: Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market...
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Transcribed Image Text:Sandra Robinson 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)
$11 million, 10-year, 15% unsecured bonds, interest payable quarterly. Bonds were priced to yield 12.00%.
(b)
$28 million par of 10-year, zero-coupon bonds at a price to yield 12.00% per year.
(c)
$17 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.)
Unsecured
Bonds
Zero-Coupon
Bonds
Mortgage
Bonds
17000000
10
%
11.00
%
(1)
Maturity
value
11000000
28000000
$
Number of
(2)
interest
40
10
periods
Stated rate
(3)
3.75
%
per period
Effective rate
(4)
3.00
%
12.00
%
per period
Payment
(5)
amount per
$
412500
$
0
period
(6)
Present value
+A
$
$
$
12.00
%
+A
$
1870000
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