Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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E14.10 (LO 1) (Information Related to Various Bond Issues) Pawnee Inc. has issued three
types of debt on January 1, 2022, the start of the company's fiscal year.
a. $10 million, 10-year, 13% unsecured bonds, interest payable quarterly. Bonds were priced to yield
12%.
b. $25 million par of 10-year, zero-coupon bonds at a price to yield 12% per year.
c. $15 million, 10-year, 10% mortgage bonds, interest payable annually to yield 12%.
Instructions
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.
Hint: you don't need to prepare the amortization schedule to answer this question. Just a simple
table is enough.
Need correct answer of this question general Accounting
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