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Bond Types and Features On January 1, the following bonds were authorized and issued by 5M Company, a manufacturer: $225,000, 10-year, 6% convertible bonds,

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Bond Types and Features On January 1, the following bonds were authorized and issued by 5M Company, a manufacturer: $225,000, 10-year, 6% convertible bonds, interest payable semiannually on July 1 and January 1. The bonds sell for $261,791, yielding a market rate of 4%. The bonds mature in 10 years on January 1. For this bond issuance, specify the following: a. Bond type(s) Corporate Yes + Municipal No = Callable No Convertible Yes b. Face value $ 225,000 c. Maturity date January 1, Year 11 d. Stated rate per interest period 0 % e. Interest payment dates July 1, January 1 f. Authorization date January 1, Year 1 = g. Market rate per interest period 0 h. Bond selling price $ 261,791 % i. Bond issue date January 1, Year 1

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